Texas Senate Bill SB1397

Texas 2017 - 85th Regular

Caption

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.