By: Estes, Van de Putte S.B. No. 472
(In the Senate - Filed January 13, 2009; February 17, 2009,
read first time and referred to Committee on Business and Commerce;
April 17, 2009, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 8, Nays 0; April 17, 2009,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 472 By: Estes
A BILL TO BE ENTITLED
AN ACT
relating to notice required before and period to vacate after
foreclosure sale of real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 24.005, Property Code, is amended by
adding Subsection (b-1) to read as follows:
(b-1) A purchaser of a property at a foreclosure sale for
which notice was given under Section 51.002(b) shall deliver to the
tenant not later than 24 hours after the time of the foreclosure
sale a notice to vacate the property that states the tenant's rights
under this chapter and Chapter 51. The attorney general shall
prescribe the contents of the notice. The purchaser may require the
tenant to vacate the property before the period prescribed by
Section 51.002(i) only for failure to pay rent or other payment due
under the lease agreement, including a late fee, as of the date of
sale.
SECTION 2. Section 51.002, Property Code, is amended by
amending Subsection (d) and adding Subsections (d-1), (d-2), (i),
and (j) to read as follows:
(d) Notwithstanding any agreement to the contrary, the
mortgage servicer of the debt shall serve a debtor in default under
a deed of trust or other contract lien on real property used as the
debtor's residence with written notice by certified mail stating
that the debtor is in default under the deed of trust or other
contract lien and giving the debtor at least 45 [20] days to cure
the default before notice of sale can be given under Subsection (b).
The attorney general shall prescribe the contents of the notice.
The entire calendar day on which the notice required by this
subsection is given, regardless of the time of day at which the
notice is given, is included in computing the 45-day [20-day]
notice period required by this subsection, and the entire calendar
day on which notice of sale is given under Subsection (b) is
excluded in computing the 45-day [20-day] notice period.
(d-1) In addition to the notice provided by Subsection (d),
a mortgage servicer of the debt shall serve the debtor with a
written notice under this subsection. The notice must be printed on
a separate sheet of canary yellow or a similarly colored yellow
paper that is 8-1/2 by 11 inches or larger and affixed to the notice
of default provided under Subsection (d). The attorney general
shall prescribe the contents of the notice. The notice must include
the following:
(1) a statement that the notice provided by the
mortgage servicer is required by law;
(2) a description of the process of foreclosure on a
mortgage;
(3) a statement that the debtor in default has 45 days
to cure the default as provided by Subsection (d);
(4) a description of the options available to the
debtor in default to prevent the foreclosure;
(5) a description of resources available to the debtor
in default to assist in preventing the foreclosure;
(6) a list of resources the debtor may contact for
assistance in filing a complaint concerning the foreclosure
process; and
(7) a statement that the debtor must serve a copy of
the notice of sale on each tenant as prescribed by Section 51.0022.
(d-2) In addition to the notices provided under Subsections
(d) and (d-1), the mortgage servicer of the debt shall, not later
than the fifth day after the date the notices are mailed under
Subsections (d) and (d-1), attempt and make every reasonable effort
to contact the debtor in default by telephone if the debtor has
telephone service and provide the debtor with the same information
provided in the notices under Subsections (d) and (d-1).
(i) If a sale of property described by this section occurs,
notwithstanding Chapter 24:
(1) the tenant of the debtor who timely pays rent is
not required to vacate the property before the 31st day after the
date of the sale; and
(2) the debtor is not required to vacate the property
before the 14th day after the date of the sale.
(j) A debtor who retains possession of the property during
the period described by Subsection (i)(2):
(1) may not destroy, damage, impair, allow to
deteriorate, or commit waste on the property; and
(2) is liable:
(A) to the purchaser, for the damage caused by a
violation of Subdivision (1); and
(B) to the injured party, for any injury to an
individual or damage to any property occurring during the period of
possession described by Subsection (i)(2).
SECTION 3. Chapter 51, Property Code, is amended by adding
Section 51.0022 to read as follows:
Sec. 51.0022. NOTICE OF SALE TO TENANT. Not later than the
seventh day after the date a debtor receives a notice of sale under
Section 51.002(b), the debtor shall serve a copy of the notice on
each tenant of the property by any one of the following methods:
(1) personal delivery to the tenant;
(2) certified mail, return receipt requested, to the
tenant; or
(3) leaving the notice inside the dwelling, as defined
by Section 92.001, in a conspicuous place if notice in that manner
is authorized in a written lease.
SECTION 4. The changes in law made by this Act apply only to
a notice required to be provided on or after September 1, 2009. A
notice required to be provided before September 1, 2009, is
governed by the law in effect immediately before that date, and that
law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2009.
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