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A BILL TO BE ENTITLED
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AN ACT
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relating to a grace period to cure a default before foreclosure of |
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certain contract liens on the residence of certain surviving |
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spouses of military servicemembers and to the eligibility of the |
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surviving spouse of a disabled veteran to pay ad valorem taxes |
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imposed on a residence homestead in installments. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 51.015, Property Code, is |
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amended to read as follows: |
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Sec. 51.015. SALE OF CERTAIN PROPERTY OWNED BY MEMBER OF THE |
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MILITARY OR SURVIVING SPOUSE. |
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SECTION 2. Section 51.015, Property Code, is amended by |
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amending Subsections (b), (d), and (e) and adding Subsections (c-1) |
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and (c-2) to read as follows: |
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(b) This section applies only to an obligation: |
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(1) that is secured by a mortgage, deed of trust, or |
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other contract lien on real property or personal property that is a |
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dwelling owned by a military servicemember or is the residence of |
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the surviving spouse of a military servicemember who was killed |
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during active duty military service; |
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(2) that originates before the date on which the |
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servicemember's active duty military service commences; and |
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(3) for which the servicemember or surviving spouse is |
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still obligated. |
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(c-1) Notwithstanding Section 51.002(d) or any agreement to |
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the contrary, if a mortgagee receives notice that a debtor in |
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default under a deed of trust or other contract lien on real |
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property used as the debtor's residence is the surviving spouse of a |
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military servicemember killed during active duty military service |
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in the 12 months preceding the date of default, the mortgagee shall |
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give the debtor at least nine months from the date of default to |
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cure the default before: |
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(1) filing an action to foreclose a lien or otherwise |
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enforce an obligation described by Subsection (b); or |
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(2) giving notice of sale under Section 51.002(b). |
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(c-2) In an action to foreclose a lien or otherwise enforce |
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an obligation described by Subsection (b) filed during the 12 |
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months after the date on which a servicemember was killed during |
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active duty military service or during a cure period prescribed by |
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Subsection (c-1), the court shall on the application of the |
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surviving spouse of the servicemember stay the proceedings until |
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the expiration of the cure period prescribed by Subsection (c-1). |
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(d) A sale, foreclosure, or seizure of property under a |
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mortgage, deed of trust, or other contract lien described by |
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Subsection (b) may not be conducted during the military |
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servicemember's period of active duty military service, [or] during |
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the nine months after the date on which that service period |
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concludes, or, for a property that is the residence of the |
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servicemember's surviving spouse, during the nine months after the |
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date notice in Subsection (c)(1) was given to mortgagee unless the |
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sale, foreclosure, or seizure is conducted under: |
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(1) a court order issued before the sale, foreclosure, |
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or seizure; or |
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(2) an agreement that complies with Subsection (e). |
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(e) A military servicemember or the surviving spouse of a |
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military servicemember who was killed during active duty military |
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service may waive the servicemember's or surviving spouse's rights |
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under this section only as provided by this subsection. The waiver |
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must be: |
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(1) in writing in at least 12-point type; |
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(2) executed as an instrument separate from the |
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obligation to which the waiver applies; and |
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(3) made under a written agreement: |
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(A) executed during or after the servicemember's |
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period of active duty military service or, if executed by the |
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surviving spouse, after the date on which the servicemember was |
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killed during active duty military service; and |
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(B) specifying the legal instrument to which the |
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waiver applies and, if the servicemember is not a party to the |
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instrument, the servicemember concerned. |
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SECTION 3. (a) Section 31.031, Tax Code, is amended by |
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amending Subsection (a) and adding Subsection (a-1) to read as |
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follows: |
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(a) This section applies only to: |
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(1) [If before the delinquency date] an individual who |
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is: |
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(A) disabled or at least 65 years of age; and |
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(B) [is] qualified for an exemption under Section |
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11.13(c); or |
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(2) an individual who is: |
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(A) the unmarried surviving spouse of a disabled |
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veteran; and |
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(B) qualified for an exemption under Section |
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11.22. |
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(a-1) If before the delinquency date an individual to whom |
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this section applies pays at least one-fourth of a taxing unit's |
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taxes imposed on property that the person owns and occupies as a |
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residence homestead, accompanied by notice to the taxing unit that |
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the person will pay the remaining taxes in installments, the person |
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may pay the remaining taxes without penalty or interest in three |
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equal installments. The first installment must be paid before |
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April 1, the second installment before June 1, and the third |
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installment before August 1. |
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(b) The change in law made by this section to Section |
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31.031, Tax Code, applies only to an ad valorem tax year that begins |
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on or after January 1, 2012. |
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(c) This section takes effect January 1, 2012. |
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SECTION 4. The change in law made by Section 51.015, |
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Property Code, as amended by this Act, applies only to a security |
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interest that attaches on or after the effective date of this Act. |
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A security interest that attaches before the effective date of this |
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Act is governed by the law in effect on the date the security |
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interest attached, and that law is continued in effect for that |
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purpose. |
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SECTION 5. Except as otherwise provided by this Act, this |
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Act takes effect September 1, 2011. |