Texas 2011 - 82nd Regular

Texas House Bill HB635 Compare Versions

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1	1	82R24522 E
2	2	By: Guillen H.B. No. 635
3	3	Substitute the following for H.B. No. 635:
4	4	By: Pickett C.S.H.B. No. 635
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a grace period to cure a default before foreclosure of
10	10	certain contract liens on the residence of certain surviving
11	11	spouses of military servicemembers and to the eligibility of the
12	12	surviving spouse of a disabled veteran to pay ad valorem taxes
13	13	imposed on a residence homestead in installments.
14	14	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	15	SECTION 1. The heading to Section 51.015, Property Code, is
16	16	amended to read as follows:
17	17	Sec. 51.015. SALE OF CERTAIN PROPERTY OWNED BY MEMBER OF THE
18	18	MILITARY OR SURVIVING SPOUSE.
19	19	SECTION 2. Section 51.015, Property Code, is amended by
20	20	amending Subsections (b), (d), and (e) and adding Subsections (c-1)
21	21	and (c-2) to read as follows:
22	22	(b) This section applies only to an obligation:
23	23	(1) that is secured by a mortgage, deed of trust, or
24	24	other contract lien on real property or personal property that is a
25	25	dwelling owned by a military servicemember or is the residence of
26	26	the surviving spouse of a military servicemember who was killed
27	27	during active duty military service;
28	28	(2) that originates before the date on which the
29	29	servicemember's active duty military service commences; and
30	30	(3) for which the servicemember or surviving spouse is
31	31	still obligated.
32	32	(c-1) Notwithstanding Section 51.002(d) or any agreement to
33	33	the contrary, if a mortgagee receives notice that a debtor in
34	34	default under a deed of trust or other contract lien on real
35	35	property used as the debtor's residence is the surviving spouse of a
36	36	military servicemember killed during active duty military service
37	37	in the 12 months preceding the date of default, the mortgagee shall
38	38	give the debtor at least nine months from the date of default to
39	39	cure the default before:
40	40	(1) filing an action to foreclose a lien or otherwise
41	41	enforce an obligation described by Subsection (b); or
42	42	(2) giving notice of sale under Section 51.002(b).
43	43	(c-2) In an action to foreclose a lien or otherwise enforce
44	44	an obligation described by Subsection (b) filed during the 12
45	45	months after the date on which a servicemember was killed during
46	46	active duty military service or during a cure period prescribed by
47	47	Subsection (c-1), the court shall on the application of the
48	48	surviving spouse of the servicemember stay the proceedings until
49	49	the expiration of the cure period prescribed by Subsection (c-1).
50	50	(d) A sale, foreclosure, or seizure of property under a
51	51	mortgage, deed of trust, or other contract lien described by
52	52	Subsection (b) may not be conducted during the military
53	53	servicemember's period of active duty military service, [or] during
54	54	the nine months after the date on which that service period
55	55	concludes, or, for a property that is the residence of the
56	56	servicemember's surviving spouse, during the nine months after the
57	57	date notice in Subsection (c)(1) was given to mortgagee unless the
58	58	sale, foreclosure, or seizure is conducted under:
59	59	(1) a court order issued before the sale, foreclosure,
60	60	or seizure; or
61	61	(2) an agreement that complies with Subsection (e).
62	62	(e) A military servicemember or the surviving spouse of a
63	63	military servicemember who was killed during active duty military
64	64	service may waive the servicemember's or surviving spouse's rights
65	65	under this section only as provided by this subsection. The waiver
66	66	must be:
67	67	(1) in writing in at least 12-point type;
68	68	(2) executed as an instrument separate from the
69	69	obligation to which the waiver applies; and
70	70	(3) made under a written agreement:
71	71	(A) executed during or after the servicemember's
72	72	period of active duty military service or, if executed by the
73	73	surviving spouse, after the date on which the servicemember was
74	74	killed during active duty military service; and
75	75	(B) specifying the legal instrument to which the
76	76	waiver applies and, if the servicemember is not a party to the
77	77	instrument, the servicemember concerned.
78	78	SECTION 3. (a) Section 31.031, Tax Code, is amended by
79	79	amending Subsection (a) and adding Subsection (a-1) to read as
80	80	follows:
81	81	(a) This section applies only to:
82	82	(1) [If before the delinquency date] an individual who
83	83	is:
84	84	(A) disabled or at least 65 years of age; and
85	85	(B) [is] qualified for an exemption under Section
86	86	11.13(c); or
87	87	(2) an individual who is:
88	88	(A) the unmarried surviving spouse of a disabled
89	89	veteran; and
90	90	(B) qualified for an exemption under Section
91	91	11.22.
92	92	(a-1) If before the delinquency date an individual to whom
93	93	this section applies pays at least one-fourth of a taxing unit's
94	94	taxes imposed on property that the person owns and occupies as a
95	95	residence homestead, accompanied by notice to the taxing unit that
96	96	the person will pay the remaining taxes in installments, the person
97	97	may pay the remaining taxes without penalty or interest in three
98	98	equal installments. The first installment must be paid before
99	99	April 1, the second installment before June 1, and the third
100	100	installment before August 1.
101	101	(b) The change in law made by this section to Section
102	102	31.031, Tax Code, applies only to an ad valorem tax year that begins
103	103	on or after January 1, 2012.
104	104	(c) This section takes effect January 1, 2012.
105	105	SECTION 4. The change in law made by Section 51.015,
106	106	Property Code, as amended by this Act, applies only to a security
107	107	interest that attaches on or after the effective date of this Act.
108	108	A security interest that attaches before the effective date of this
109	109	Act is governed by the law in effect on the date the security
110	110	interest attached, and that law is continued in effect for that
111	111	purpose.
112	112	SECTION 5. Except as otherwise provided by this Act, this
113	113	Act takes effect September 1, 2011.