82R3697 TJS-D
	By: Guillen	H.B. No. 635

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