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A BILL TO BE ENTITLED
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AN ACT
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relating to a grace period to cure a default before foreclosure of |
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certain contract liens on the residence of certain surviving |
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spouses of military servicemembers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 51.015, Property Code, is |
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amended to read as follows: |
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Sec. 51.015. SALE OF CERTAIN PROPERTY OWNED BY MEMBER OF THE |
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MILITARY OR SURVIVING SPOUSE. |
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SECTION 2. Section 51.015, Property Code, is amended by |
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amending Subsections (b), (d), and (e) and adding Subsections |
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(c-1) and (c-2) to read as follows: |
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(b) This section applies only to an obligation: |
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(1) that is secured by a mortgage, deed of trust, or |
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other contract lien on real property or personal property that is a |
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dwelling owned by a military servicemember or is the residence of |
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the surviving spouse of a military servicemember who was killed |
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during active duty military service; |
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(2) that originates before the date on which the |
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servicemember's active duty military service commences; and |
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(3) for which the servicemember or surviving spouse is |
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still obligated. |
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(c-1) Notwithstanding Section 51.002(d) or any agreement to |
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the contrary, if a mortgagee receives notice that a debtor in |
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default under a deed of trust or other contract lien on real |
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property used as the debtor's residence is the surviving spouse of a |
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military servicemember killed during active duty military service |
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in the 12 months preceding the date of default, the mortgagee shall |
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give the debtor at least 180 days from the date of default to cure |
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the default before: |
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(1) filing an action to foreclose a lien or otherwise |
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enforce an obligation described by Subsection (b); or |
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(2) giving notice of sale under Section 51.002(b). |
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(c-2) In an action to foreclose a lien or otherwise enforce |
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an obligation described by Subsection (b) filed during the 12 |
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months after the date on which a servicemember was killed during |
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active duty military service or during a cure period prescribed by |
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Subsection (c-1), the court shall on the application of the |
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surviving spouse of the servicemember stay the proceedings until |
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the expiration of the cure period prescribed by Subsection (c-1). |
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(d) A sale, foreclosure, or seizure of property under a |
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mortgage, deed of trust, or other contract lien described by |
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Subsection (b) may not be conducted during the military |
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servicemember's period of active duty military service, [or] during |
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the nine months after the date on which that service period |
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concludes, or, for a property that is the residence of the |
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servicemember's surviving spouse, during the 12 months after the |
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date on which the servicemember was killed during active duty |
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military service unless the sale, foreclosure, or seizure is |
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conducted under: |
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(1) a court order issued before the sale, foreclosure, |
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or seizure; or |
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(2) an agreement that complies with Subsection (e). |
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(e) A military servicemember or the surviving spouse of a |
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military servicemember who was killed during active duty military |
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service may waive the servicemember's or surviving spouse's rights |
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under this section only as provided by this subsection. The waiver |
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must be: |
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(1) in writing in at least 12-point type; |
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(2) executed as an instrument separate from the |
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obligation to which the waiver applies; and |
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(3) made under a written agreement: |
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(A) executed during or after the servicemember's |
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period of active duty military service or, if executed by the |
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surviving spouse, after the date on which the servicemember was |
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killed during active duty military service; and |
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(B) specifying the legal instrument to which the |
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waiver applies and, if the servicemember is not a party to the |
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instrument, the servicemember concerned. |
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SECTION 3. The change in law made by this Act applies only |
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to a security interest that attaches on or after the effective date |
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of this Act. A security interest that attaches before the effective |
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date of this Act is governed by the law in effect on the date the |
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security interest attached, and that law is continued in effect for |
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that purpose. |
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SECTION 4. This Act takes effect September 1, 2011. |