H.B. No. 1235




AN ACT

relating to the notice required for a sale of real property under a 
contract lien.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 51.002(b), Property Code, is amended to 
read as follows: 
	(b)  Notice of the sale, which must include a statement of 
the earliest time at which the sale will begin, must be given at 
least 21 days before the date of the sale by:
		(1)  [by] posting at the courthouse door of each county 
in which the property is located a written notice designating the 
county in which the property will be sold;
		(2)  [by] filing in the office of the county clerk of 
each county in which the property is located a copy of the notice 
posted under Subdivision (1); and
		(3)  [by the mortgage servicer of the debt to which the 
power of sale is related] serving written notice of the sale by 
certified mail on each debtor who, according to the records of the 
mortgage servicer of the debt, is obligated to pay the debt.
	SECTION 2.  Section 51.0025, Property Code, is amended to 
read as follows:   
	Sec. 51.0025.  ADMINISTRATION OF FORECLOSURE BY MORTGAGE 
SERVICER.  A mortgage servicer may administer the foreclosure of 
property under Section 51.002 on behalf of a mortgagee if:
		(1)  the mortgage servicer and the mortgagee have 
entered into an agreement granting the current mortgage servicer 
authority to service the mortgage; and
		(2)  the notices [mortgage servicer discloses in the 
notice] required under Section 51.002(b) disclose [51.002:
			[(A)]  that the mortgage servicer is representing 
the mortgagee under a servicing agreement with the mortgagee[;] and
			[(B)]  the name [and address] of the mortgagee 
and:
			(A)  the address of the mortgagee; or                                 
			(B)  the address of the mortgage servicer, if 
there is an agreement granting a mortgage servicer the authority to 
service the mortgage.
	SECTION 3.  (a)  Except as provided by a security instrument 
or other contract executed before the effective date of this Act, 
the changes in law made by Section 51.002, Property Code, as amended 
by this Act, apply to the notice required under Section 51.002, 
Property Code, that is posted, filed, and served on or after the 
effective date of this Act.  If a security instrument or other 
contract executed before the effective date of this Act conflicts 
with the changes in law made by Section 51.002, Property Code, as 
amended by this Act, as to the notice required to sell real property 
under a contract lien, the notice provisions of the security 
instrument or other contract prevail, and the security instrument 
or other contract is governed by the law in effect at the time the 
security instrument or other contract was executed, and that former 
law is continued in effect for that purpose.
	(b)  Except as provided by a security instrument or other 
contract executed before the effective date of this Act, the 
changes in law made by Section 51.0025, Property Code, as amended by 
this Act, apply to the administration of a sale of real property 
under a contract lien that is conducted on or after the effective 
date of this Act.  If a security instrument or other contract 
executed before the effective date of this Act conflicts with the 
changes in law made by Section 51.0025, Property Code, as amended by 
this Act, as to the administration of a sale of real property under 
a contract lien, the security instrument or other contract 
prevails, and the security instrument or other contract is governed 
by the law in effect at the time the security instrument or other 
contract was executed, and the former law is continued in effect for 
that purpose.
	SECTION 4.  This Act takes effect September 1, 2005.                           




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 1235 was passed by the House on May 3, 
2005, by a non-record vote.

                                                  ______________________________
                                                     Chief Clerk of the House   

	I certify that H.B. No. 1235 was passed by the Senate on May 
24, 2005, by the following vote:  Yeas 31, Nays 0.

                                                  ______________________________
                                                     Secretary of the Senate    



APPROVED:  _____________________                                            
 
                   Date                                                      




 
          _____________________                                          
 
                 Governor