| 1 | 2 | | By: West S.B. No. 283 |
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| 2 | 3 | | |
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| 3 | 4 | | |
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| 4 | 5 | | A BILL TO BE ENTITLED |
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| 5 | 6 | | AN ACT |
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| 6 | 7 | | relating to requirements for the nonjudicial foreclosure of certain |
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| 7 | 8 | | residential mortgage liens. |
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| 8 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 10 | | SECTION 1. Chapter 51, Property Code, is amended by adding |
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| 10 | 11 | | Section 51.0012 to read as follows: |
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| 11 | 12 | | Sec. 51.0012. EXPEDITED ORDER ALLOWING NONJUDICIAL |
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| 12 | 13 | | FORECLOSURE OF CERTAIN LIENS REQUIRED. (a) In this section: |
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| 13 | 14 | | (1) "Loss mitigation application" means an oral or |
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| 14 | 15 | | written request for a loss mitigation option that is accompanied by |
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| 15 | 16 | | any information required by a mortgage servicer for evaluation for |
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| 16 | 17 | | a loss mitigation option. |
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| 17 | 18 | | (2) "Loss mitigation option" means an alternative to |
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| 18 | 19 | | foreclosure offered by the mortgagee that is made available through |
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| 19 | 20 | | the mortgage servicer to the debtor. |
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| 20 | 21 | | (3) "Mortgage loan" includes a purchase money mortgage |
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| 21 | 22 | | loan, a home equity loan, and a refinanced mortgage loan. The term |
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| 22 | 23 | | does not include a home equity line of credit or a reverse mortgage. |
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| 23 | 24 | | (b) Notwithstanding any agreement to the contrary, a |
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| 24 | 25 | | mortgagee or mortgage servicer of a mortgage loan secured by a deed |
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| 25 | 26 | | of trust or other contract lien on real property used as a debtor's |
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| 26 | 27 | | residence may not foreclose the lien under Section 51.002 unless |
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| 27 | 28 | | the mortgagee or mortgage servicer obtains an expedited order under |
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| 28 | 29 | | Rule 736, Texas Rules of Civil Procedure, before proceeding with |
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| 29 | 30 | | the foreclosure. |
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| 30 | 31 | | (c) In the application for the expedited order to allow the |
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| 31 | 32 | | foreclosure of the lien, the mortgagee or mortgage servicer must |
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| 32 | 33 | | state that: |
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| 33 | 34 | | (1) a payment for the mortgage loan is at least 120 |
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| 34 | 35 | | days delinquent; and |
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| 35 | 36 | | (2) no loss mitigation application submitted to the |
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| 36 | 37 | | mortgage servicer by any person who is obligated to pay the mortgage |
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| 37 | 38 | | loan is pending with the mortgage servicer. |
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| 38 | 39 | | SECTION 2. Section 51.0012, Property Code, as added by this |
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| 39 | 40 | | Act, applies only to a mortgage loan agreement entered into on or |
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| 40 | 41 | | after the effective date of this Act. A mortgage loan agreement |
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| 41 | 42 | | entered into before the effective date of this Act is governed by |
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| 42 | 43 | | the law applicable to the agreement immediately before that date, |
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| 43 | 44 | | and that law is continued in effect for that purpose. |
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| 44 | 45 | | SECTION 3. This Act takes effect September 1, 2015. |
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