Texas 2025 - 89th Regular

Texas Senate Bill SB2833 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R10426 RAL-D
2	2	By: Johnson S.B. No. 2833
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the nonjudicial foreclosure sale of certain residential
10	10	real property.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Chapter 51, Property Code, is amended by adding
13	13	Section 51.0012 to read as follows:
14	14	Sec. 51.0012. PROVISION TO THIRD PARTY OF NOTICE OF DEFAULT
15	15	OR NOTICE OF SALE. (a) In this section, "residential real
16	16	property" has the meaning assigned by Section 51.016.
17	17	(b) A lender of a mortgage loan secured by residential real
18	18	property to be used as the borrower's residence shall provide
19	19	written notice to the borrower not later than the date the borrower
20	20	signs the security instrument that a third party designated by the
21	21	borrower may request to receive copies of any notice of default or
22	22	notice of sale provided to the borrower under Section 51.002,
23	23	including:
24	24	(1) a family member;
25	25	(2) a housing counseling agency approved by the United
26	26	States Department of Housing and Urban Development; and
27	27	(3) an attorney.
28	28	SECTION 2. Chapter 51, Property Code, is amended by adding
29	29	Section 51.017 to read as follows:
30	30	Sec. 51.017. NONJUDICIAL FORECLOSURE SALE OF CERTAIN
31	31	RESIDENTIAL REAL PROPERTY. (a) This section applies only to a
32	32	nonjudicial foreclosure sale of residential real property
33	33	conducted under Section 51.002. In this section, "residential real
34	34	property" has the meaning assigned by Section 51.016.
35	35	(b) A mortgage servicer of a debt may not serve a debtor in
36	36	default under a deed of trust or other contract lien on residential
37	37	real property used as the debtor's residence with a notice of
38	38	default under Section 51.002(d) unless the mortgage servicer
39	39	provides the debtor with written notice by certified mail not later
40	40	than the 30th day before the date the mortgage servicer serves the
41	41	notice of default that informs the debtor that a third party
42	42	designated by the debtor may request to receive copies of any notice
43	43	of default or notice of sale provided to the debtor under Section
44	44	51.002, including:
45	45	(1) a family member;
46	46	(2) a housing counseling agency approved by the United
47	47	States Department of Housing and Urban Development; and
48	48	(3) an attorney.
49	49	(c) At the time a mortgage servicer provides a notice of
50	50	default or notice of sale to the debtor under this section, the
51	51	mortgage servicer must provide a copy of the notice of default or
52	52	notice of sale to any person designated by the debtor in response to
53	53	a notice provided to the debtor under Subsection (b) or Section
54	54	51.0012 who makes a request to receive a copy of the notice of
55	55	default or notice of sale.
56	56	(d) If, after receiving a notice of sale under Section
57	57	51.002(b), a debtor provides a trustee or substitute trustee by
58	58	certified mail a written listing agreement with a license holder
59	59	under Chapter 1101, Occupations Code, for the sale of the
60	60	residential real property not later than the fifth business day
61	61	before the date of sale specified in the notice of sale, the trustee
62	62	or substitute trustee shall postpone the foreclosure sale until at
63	63	least the 45th day after the scheduled date of sale. A second
64	64	notice of sale must be given not later than the 21st day before the
65	65	new date of sale in the same manner prescribed by Section 51.002(b).
66	66	(e) If, after receiving the second notice of sale under
67	67	Subsection (d) and not later than the fifth business day before the
68	68	date of sale specified in the notice, a debtor provides a trustee or
69	69	substitute trustee by certified mail a copy of a signed purchase
70	70	agreement for the sale of the residential real property with a
71	71	purchase price amount equal to or greater than the unpaid balance of
72	72	the indebtedness secured by the property, the trustee or substitute
73	73	trustee shall postpone the foreclosure sale until at least the 45th
74	74	day after the date the trustee or substitute trustee receives the
75	75	purchase agreement. A final notice of sale must be given not later
76	76	than the 21st day before the new date of sale in the same manner
77	77	prescribed by Section 51.002(b).
78	78	(f) A trustee or substitute trustee may not grant a
79	79	postponement of a foreclosure sale under Subsection (d) or (e) more
80	80	than once.
81	81	(g) A mortgagee shall provide a valuation of the fair market
82	82	value of the residential real property to a trustee or substitute
83	83	trustee not later than 10 days before the initial date of sale
84	84	specified in a notice of sale provided under Section 51.002(b). The
85	85	trustee or substitute trustee may rely on the valuation provided by
86	86	the mortgagee without having to verify the source or accuracy of the
87	87	valuation. The valuation may not be made more than six months
88	88	before the date of the initial date of sale. The fair market value
89	89	may be determined by:
90	90	(1) an opinion of a license holder under Chapter 1101,
91	91	Occupations Code;
92	92	(2) an appraisal from a license holder under Chapter
93	93	1103, Occupations Code;
94	94	(3) a value from a commercially utilized automated
95	95	valuation model; or
96	96	(4) a value from a computerized property valuation
97	97	system that is used to derive a real property value.
98	98	(h) A trustee or substitute trustee conducting a
99	99	foreclosure sale to which this section applies may not accept a bid
100	100	of less than 67 percent of the fair market value of the residential
101	101	real property, based on the valuation provided under Subsection
102	102	(g). If no party submits a bid in an amount equal to or greater than
103	103	67 percent of the fair market value of the residential real
104	104	property, the trustee or substitute trustee shall postpone the
105	105	foreclosure sale until not earlier than the seventh day after the
106	106	date of sale, after which a trustee or substitute trustee shall
107	107	conduct a second foreclosure sale and may accept a bid of less than
108	108	67 percent of the fair market value of the property.
109	109	SECTION 3. Section 51.017, Property Code, as added by this
110	110	Act, applies only to a foreclosure action initiated by the
111	111	provision of a notice of default or notice of sale under Section
112	112	51.002, Property Code, on or after the effective date of this Act.
113	113	SECTION 4. This Act takes effect September 1, 2025.