| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to requirements for the nonjudicial foreclosure of certain |
|
|
residential mortgage liens. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Chapter 51, Property Code, is amended by adding |
|
|
Section 51.0012 to read as follows: |
|
|
Sec. 51.0012. EXPEDITED ORDER ALLOWING NONJUDICIAL |
|
|
FORECLOSURE OF CERTAIN LIENS REQUIRED. (a) In this section: |
|
|
(1) "Loss mitigation application" means an oral or |
|
|
written request for a loss mitigation option that is accompanied by |
|
|
any information required by a mortgage servicer for evaluation for |
|
|
a loss mitigation option. |
|
|
(2) "Loss mitigation option" means an alternative to |
|
|
foreclosure offered by the mortgagee that is made available through |
|
|
the mortgage servicer to the debtor. |
|
|
(3) "Mortgage loan" includes a purchase money mortgage |
|
|
loan, a home equity loan, and a refinanced mortgage loan. The term |
|
|
does not include a home equity line of credit or a reverse mortgage. |
|
|
(b) Notwithstanding any agreement to the contrary, a |
|
|
mortgagee or mortgage servicer of a mortgage loan secured by a deed |
|
|
of trust or other contract lien on real property used as a debtor's |
|
|
residence may not foreclose the lien under Section 51.002 unless |
|
|
the mortgagee or mortgage servicer obtains an expedited order under |
|
|
Rule 736, Texas Rules of Civil Procedure, before proceeding with |
|
|
the foreclosure. |
|
|
(c) In the application for the expedited order to allow the |
|
|
foreclosure of the lien, the mortgagee or mortgage servicer must |
|
|
state that: |
|
|
(1) a payment for the mortgage loan is at least 120 |
|
|
days delinquent; and |
|
|
(2) no loss mitigation application submitted to the |
|
|
mortgage servicer by any person who is obligated to pay the mortgage |
|
|
loan is pending with the mortgage servicer. |
|
|
SECTION 2. Section 51.0012, Property Code, as added by this |
|
|
Act, applies only to a mortgage loan agreement entered into on or |
|
|
after the effective date of this Act. A mortgage loan agreement |
|
|
entered into before the effective date of this Act is governed by |
|
|
the law applicable to the agreement immediately before that date, |
|
|
and that law is continued in effect for that purpose. |
|
|
SECTION 3. This Act takes effect September 1, 2015. |