09 Nov Texas Attorney General Proposes Mortgage Deferment Legislation
Greg Abbott, Texas Attorney General, has proposed a legislative initiative aimed at improving the foreclosure process in Texas and help homeowners stay in their homes. He has recommended state legislators consider enacting the Texas Foreclosure Deferment Act.
Under the proposed act, a mortgage loan servicer would be required to provide a Texas homeowner with a certified letter stating that the debtor has 45 days to cure a loan default before a notice of sale. Currently, state law only requires the servicer to give a homeowner 20 days to cure the default.
If the proposal is approved, lenders would also be required to contact the borrower by telephone or in person, or prove the servicer made a legitimate attempt to contact the homeowner, before filing for foreclosure. Additionally, homeowners would have 30 days after the foreclosure sale to vacate the property.
The Office of the Attorney General would also be authorized to create a model “Notice of Foreclosure” form for mortgage companies to use. The form would include a plain language definition of mortgage foreclosure; a reminder that homeowners have 45 days to cure defaulted loans; all rights and options available to homeowners seeking to save their homes; a warning about foreclosure rescue scams; and a listing of resources available to homeowners.
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