| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the foreclosure of a contract lien on certain |
|
|
residential real property. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter B, Chapter 402, Government Code, is |
|
|
amended by adding Section 402.035 to read as follows: |
|
|
Sec. 402.035. RESIDENTIAL PROPERTY FORECLOSURE NOTICE. (a) |
|
|
The attorney general shall adopt a model form for a notice of |
|
|
default required under Section 51.002(d), Property Code. |
|
|
(b) The notice must include: |
|
|
(1) a plain-language definition of the term |
|
|
"foreclosure"; |
|
|
(2) a statement that state law requires that the |
|
|
debtor in default be given at least 45 days to cure the default; |
|
|
(3) a description of the debtor's rights and the |
|
|
options available to the debtor to prevent the foreclosure; |
|
|
(4) a description of and warning against any |
|
|
fraudulent foreclosure rescue activities that may be encountered by |
|
|
the debtor in connection with the foreclosure, including any |
|
|
unconscionable actions or courses of action under Subchapter E, |
|
|
Chapter 17, Business & Commerce Code; and |
|
|
(5) a description of and contact information for |
|
|
resources available to the debtor to assist in preventing the |
|
|
foreclosure or in filing a complaint concerning the foreclosure |
|
|
process, including housing and consumer advocates, the State Bar of |
|
|
Texas, and nonprofit legal assistance programs. |
|
|
(c) The attorney general shall maintain an updated version |
|
|
of the model notice form adopted under this section on the attorney |
|
|
general's Internet website. |
|
|
SECTION 2. Section 51.002(d), Property Code, is amended to |
|
|
read as follows: |
|
|
(d) Notwithstanding any agreement to the contrary, the |
|
|
mortgage servicer of the debt shall serve a debtor in default under |
|
|
a deed of trust or other contract lien on real property used as the |
|
|
debtor's residence with written notice by certified mail. The |
|
|
notice of default required by this subsection must state [stating] |
|
|
that the debtor is in default under the deed of trust or other |
|
|
contract lien and must give [giving] the debtor at least 45 [20] |
|
|
days to cure the default before notice of sale can be given under |
|
|
Subsection (b). The notice of default must include any other |
|
|
information in the model notice form adopted by the attorney |
|
|
general under Section 402.035, Government Code. The entire |
|
|
calendar day on which the notice required by this subsection is |
|
|
given, regardless of the time of day at which the notice is given, |
|
|
is included in computing the 45-day [20-day] notice period required |
|
|
by this subsection, and the entire calendar day on which notice of |
|
|
sale is given under Subsection (b) is excluded in computing the |
|
|
45-day [20-day] notice period. |
|
|
SECTION 3. Chapter 51, Property Code, is amended by adding |
|
|
Sections 51.0022 and 51.010 to read as follows: |
|
|
Sec. 51.0022. CONTACT REQUIREMENT. (a) In addition to |
|
|
giving a notice of default under Section 51.002(d), a mortgage |
|
|
servicer shall make a good faith attempt to contact a debtor in |
|
|
default described by Section 51.002(d) in person or by telephone |
|
|
before notice of sale may be given under Section 51.002(b). |
|
|
(b) The notice of sale of the property filed under Section |
|
|
51.002(b) must include an affidavit by the mortgage servicer that |
|
|
affirms: |
|
|
(1) the mortgage servicer contacted the debtor in |
|
|
person or by telephone to notify the debtor of the default; or |
|
|
(2) the mortgage servicer made a good faith attempt to |
|
|
contact the debtor to notify the debtor of the default and was |
|
|
unsuccessful. |
|
|
Sec. 51.010. HOMEOWNER'S TIME TO VACATE. A person who |
|
|
purchases residential real property at a foreclosure sale under |
|
|
this chapter and gives a notice to vacate under Section 24.005 to a |
|
|
person who owned the property immediately before the foreclosure |
|
|
sale and occupies the property at the time of the foreclosure sale |
|
|
may not require the former owner to vacate the property before the |
|
|
31st day after the date of the foreclosure sale. |
|
|
SECTION 4. (a) Not later than November 1, 2009, the attorney |
|
|
general shall adopt the model notice form under Section 402.035, |
|
|
Government Code, as added by this Act. |
|
|
(b) The changes in law made by this Act to Chapter 51, |
|
|
Property Code, apply only to a sale of residential real property in |
|
|
which notice of default under Section 51.002, Property Code, is |
|
|
provided on or after December 1, 2009. A sale in which notice of |
|
|
default is provided before December 1, 2009, is subject to the law |
|
|
in effect immediately before the effective date of this Act, and |
|
|
that law is continued in effect for that purpose. |
|
|
SECTION 5. This Act takes effect September 1, 2009. |