Relating to notice by a property owner to a mortgage servicer that the owner intends to enter into a contract with a property tax lender.
Impact
The passing of SB1397 will impact the responsibilities of property owners in Texas, specifically regarding transparency and communication with mortgage services before entering contracts that involve tax payments. By formalizing the notification process, the bill aims to protect mortgage servicers from the potential risks that could arise from uncommunicated tax contracts. Moreover, it reinforces the importance of property tax compliance and implications associated with such agreements.
Summary
SB1397 amends the Texas Tax Code to require property owners to notify their mortgage servicers before entering into contracts with property tax lenders. The bill specifically mandates that property owners send a certified mail notice to their mortgage servicer at least ten days prior to executing such contracts. This is aimed at ensuring that mortgage servicers are aware of any agreements made regarding the payment of delinquent property taxes by a third party on behalf of the property owner.
Contention
One notable point of contention surrounding SB1397 revolves around the additional administrative burden it places on property owners who may be experiencing financial distress. Critics argue that requiring a notification process could complicate or delay the assistance property owners seek regarding delinquent taxes. On the other hand, proponents of the bill believe that it safeguards the interests of mortgage servicers and encourages property owners to be more proactive about their tax responsibilities, potentially reducing the chances of miscommunication and future disputes.
Relating to the calculation of certain ad valorem tax rates of a taxing unit for a year in which a property owner provides notice that the owner intends to appeal an order of an appraisal review board determining a protest by the owner regarding the appraisal of the owner's property.
Relating to the authority of a taxing unit to sell certain seized or foreclosed property to an owner of an abutting property without conducting a public sale.
Relating to the violation of certain laws and provisions of governing instruments by, and the recall by property owners of, a property owners' association board member.
Relating to notice by an appraisal district to an owner of residential property of the owner's potential eligibility for a residence homestead exemption from ad valorem taxation of the property and the manner in which certain owners may apply for the exemption.