Texas 2009 - 81st Regular

Texas Senate Bill SB609 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R2740 AJA-D
2	2	By: Shapleigh S.B. No. 609
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the foreclosure of a contract lien on certain
8	8	residential real property.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter B, Chapter 402, Government Code, is
11	11	amended by adding Section 402.035 to read as follows:
12	12	Sec. 402.035. RESIDENTIAL PROPERTY FORECLOSURE NOTICE. (a)
13	13	The attorney general shall adopt a model form for a notice of
14	14	default required under Section 51.002(d), Property Code.
15	15	(b) The notice must include:
16	16	(1) a plain-language definition of the term
17	17	"foreclosure";
18	18	(2) a statement that state law requires that the
19	19	debtor in default be given at least 45 days to cure the default;
20	20	(3) a description of the debtor's rights and the
21	21	options available to the debtor to prevent the foreclosure;
22	22	(4) a description of and warning against any
23	23	fraudulent foreclosure rescue activities that may be encountered by
24	24	the debtor in connection with the foreclosure, including any
25	25	unconscionable actions or courses of action under Subchapter E,
26	26	Chapter 17, Business & Commerce Code; and
27	27	(5) a description of and contact information for
28	28	resources available to the debtor to assist in preventing the
29	29	foreclosure or in filing a complaint concerning the foreclosure
30	30	process, including housing and consumer advocates, the State Bar of
31	31	Texas, and nonprofit legal assistance programs.
32	32	(c) The attorney general shall maintain an updated version
33	33	of the model notice form adopted under this section on the attorney
34	34	general's Internet website.
35	35	SECTION 2. Section 51.002(d), Property Code, is amended to
36	36	read as follows:
37	37	(d) Notwithstanding any agreement to the contrary, the
38	38	mortgage servicer of the debt shall serve a debtor in default under
39	39	a deed of trust or other contract lien on real property used as the
40	40	debtor's residence with written notice by certified mail. The
41	41	notice of default required by this subsection must state [stating]
42	42	that the debtor is in default under the deed of trust or other
43	43	contract lien and must give [giving] the debtor at least 45 [20]
44	44	days to cure the default before notice of sale can be given under
45	45	Subsection (b). The notice of default must include any other
46	46	information in the model notice form adopted by the attorney
47	47	general under Section 402.035, Government Code. The entire
48	48	calendar day on which the notice required by this subsection is
49	49	given, regardless of the time of day at which the notice is given,
50	50	is included in computing the 45-day [20-day] notice period required
51	51	by this subsection, and the entire calendar day on which notice of
52	52	sale is given under Subsection (b) is excluded in computing the
53	53	45-day [20-day] notice period.
54	54	SECTION 3. Chapter 51, Property Code, is amended by adding
55	55	Sections 51.0022 and 51.010 to read as follows:
56	56	Sec. 51.0022. CONTACT REQUIREMENT. (a) In addition to
57	57	giving a notice of default under Section 51.002(d), a mortgage
58	58	servicer shall make a good faith attempt to contact a debtor in
59	59	default described by Section 51.002(d) in person or by telephone
60	60	before notice of sale may be given under Section 51.002(b).
61	61	(b) The notice of sale of the property filed under Section
62	62	51.002(b) must include an affidavit by the mortgage servicer that
63	63	affirms:
64	64	(1) the mortgage servicer contacted the debtor in
65	65	person or by telephone to notify the debtor of the default; or
66	66	(2) the mortgage servicer made a good faith attempt to
67	67	contact the debtor to notify the debtor of the default and was
68	68	unsuccessful.
69	69	Sec. 51.010. HOMEOWNER'S TIME TO VACATE. A person who
70	70	purchases residential real property at a foreclosure sale under
71	71	this chapter and gives a notice to vacate under Section 24.005 to a
72	72	person who owned the property immediately before the foreclosure
73	73	sale and occupies the property at the time of the foreclosure sale
74	74	may not require the former owner to vacate the property before the
75	75	31st day after the date of the foreclosure sale.
76	76	SECTION 4. (a) Not later than November 1, 2009, the attorney
77	77	general shall adopt the model notice form under Section 402.035,
78	78	Government Code, as added by this Act.
79	79	(b) The changes in law made by this Act to Chapter 51,
80	80	Property Code, apply only to a sale of residential real property in
81	81	which notice of default under Section 51.002, Property Code, is
82	82	provided on or after December 1, 2009. A sale in which notice of
83	83	default is provided before December 1, 2009, is subject to the law
84	84	in effect immediately before the effective date of this Act, and
85	85	that law is continued in effect for that purpose.
86	86	SECTION 5. This Act takes effect September 1, 2009.