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