86R5355 SMH-F
By: J. Johnson of Dallas H.B. No. 4295
A BILL TO BE ENTITLED
AN ACT
relating to default under a deed of trust or contract lien on
certain residential property for the delinquent payment of ad
valorem taxes.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 51.0011, Property Code, is amended to
read as follows:
Sec. 51.0011. DEFAULT ARISING FROM DELINQUENT AD VALOREM
TAXES: INSTALLMENT AGREEMENTS AND DEFERRAL OR ABATEMENT OF
COLLECTION OF TAXES. [(a)] Notwithstanding any agreement to the
contrary:
(1) [,] a debtor is not in default under a deed of
trust or other contract lien on real property used as the debtor's
residence for the delinquent payment of ad valorem taxes if:
(A) [(1)] the debtor has entered [gave notice to
the mortgage servicer of the intent to enter] into an installment
agreement with the taxing unit under Section 33.02, Tax Code, for
the payment of the taxes [at least 10 days before the date the
debtor entered into the agreement]; and
(B) [(2)] the property is protected from seizure
and sale and a suit may not be filed to collect a delinquent tax on
the property as provided by Section 33.02(d), Tax Code; and
(2) a debtor is not in default under a deed of trust or
other contract lien on real property used as the debtor's residence
homestead for the delinquent payment of ad valorem taxes if:
(A) the debtor has obtained a deferral or
abatement of the collection of the ad valorem taxes on the property
under Section 33.06, Tax Code; and
(B) the deferral or abatement remains in effect.
[(b) A mortgage servicer who receives a notice described by
Subsection (a)(1) may pay the taxes subject to the installment
agreement at any time.
[(c) A mortgage servicer who receives a notice described by
Subsection (a)(1) and gives the debtor notice that the mortgage
servicer intends to accelerate the note securing the deed of trust
or other contract lien as a result of the delinquency of the taxes
that are subject to the installment agreement must rescind the
notice if the debtor enters into the agreement not later than the
30th day after the date the debtor delivers the notice.]
SECTION 2. The change in law made by this Act applies only
to a deed of trust or contract lien entered into on or after the
effective date of this Act.
SECTION 3. This Act takes effect September 1, 2019.