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