81R2740 AJA-D
By: Shapleigh S.B. No. 609
A BILL TO BE ENTITLED
AN ACT
relating to the foreclosure of a contract lien on certain
residential real property.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 402, Government Code, is
amended by adding Section 402.035 to read as follows:
Sec. 402.035. RESIDENTIAL PROPERTY FORECLOSURE NOTICE. (a)
The attorney general shall adopt a model form for a notice of
default required under Section 51.002(d), Property Code.
(b) The notice must include:
(1) a plain-language definition of the term
"foreclosure";
(2) a statement that state law requires that the
debtor in default be given at least 45 days to cure the default;
(3) a description of the debtor's rights and the
options available to the debtor to prevent the foreclosure;
(4) a description of and warning against any
fraudulent foreclosure rescue activities that may be encountered by
the debtor in connection with the foreclosure, including any
unconscionable actions or courses of action under Subchapter E,
Chapter 17, Business & Commerce Code; and
(5) a description of and contact information for
resources available to the debtor to assist in preventing the
foreclosure or in filing a complaint concerning the foreclosure
process, including housing and consumer advocates, the State Bar of
Texas, and nonprofit legal assistance programs.
(c) The attorney general shall maintain an updated version
of the model notice form adopted under this section on the attorney
general's Internet website.
SECTION 2. Section 51.002(d), Property Code, is amended 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. The
notice of default required by this subsection must state [stating]
that the debtor is in default under the deed of trust or other
contract lien and must give [giving] the debtor at least 45 [20]
days to cure the default before notice of sale can be given under
Subsection (b). The notice of default must include any other
information in the model notice form adopted by the attorney
general under Section 402.035, Government Code. 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.
SECTION 3. Chapter 51, Property Code, is amended by adding
Sections 51.0022 and 51.010 to read as follows:
Sec. 51.0022. CONTACT REQUIREMENT. (a) In addition to
giving a notice of default under Section 51.002(d), a mortgage
servicer shall make a good faith attempt to contact a debtor in
default described by Section 51.002(d) in person or by telephone
before notice of sale may be given under Section 51.002(b).
(b) The notice of sale of the property filed under Section
51.002(b) must include an affidavit by the mortgage servicer that
affirms:
(1) the mortgage servicer contacted the debtor in
person or by telephone to notify the debtor of the default; or
(2) the mortgage servicer made a good faith attempt to
contact the debtor to notify the debtor of the default and was
unsuccessful.
Sec. 51.010. HOMEOWNER'S TIME TO VACATE. A person who
purchases residential real property at a foreclosure sale under
this chapter and gives a notice to vacate under Section 24.005 to a
person who owned the property immediately before the foreclosure
sale and occupies the property at the time of the foreclosure sale
may not require the former owner to vacate the property before the
31st day after the date of the foreclosure sale.
SECTION 4. (a) Not later than November 1, 2009, the attorney
general shall adopt the model notice form under Section 402.035,
Government Code, as added by this Act.
(b) The changes in law made by this Act to Chapter 51,
Property Code, apply only to a sale of residential real property in
which notice of default under Section 51.002, Property Code, is
provided on or after December 1, 2009. A sale in which notice of
default is provided before December 1, 2009, is subject to the law
in effect immediately before the effective date of this Act, and
that law is continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2009.