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A BILL TO BE ENTITLED
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AN ACT
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relating to abatement or dismissal of a proceeding for an expedited |
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order allowing foreclosure of a lien on real property. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 154.028(e), Civil Practice and Remedies |
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Code, is amended to read as follows: |
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(e) At a hearing under Subsection (a), the court must |
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consider any objections to the referral of the case to mediation. |
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In addition, the court may abate or dismiss the application if the |
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court determines that at least 30 days prior to the hearing: |
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(1) the borrower has submitted a completed loss |
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mitigation application to the lender or servicer; and |
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(2) the lender or servicer has not provided the |
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borrower, in writing, a notice stating: |
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(A) the borrower has been denied for any loss |
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mitigation options, or |
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(B) the lender or servicer's determination of |
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which loss mitigation options, if any, will be offered to the |
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borrower on behalf of the owner or assignee of the mortgage loan. |
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(e-1) For the purpose of subsection (e), "loss mitigation |
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application" means a completed application in which a lender or |
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servicer has received all information the lender or servicer |
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requested from a borrower to evaluate the borrower for the loss |
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mitigation options available to the borrower. |
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SECTION 2. The change in law made by this Act applies only |
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to an application for an expedited order allowing foreclosure of a |
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lien that is filed on or after the effective date of this Act. An |
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application filed before the effective date of this Act is governed |
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by the law applicable to the application immediately before the |
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effective date of this Act, and that law is continued in effect for |
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that purpose. |
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SECTION 3. This Act takes effect September 1, 2017. |