Texas House Passes Mortgage Foreclosure Deferment Act
Austin — The Texas House passed SB 472, the Mortgage Foreclosure Deferment Act, by State Senator Craig Estes (R-Wichita Falls), to extend the time for homeowners facing foreclosure to resolve a mortgage default and provide more time to vacate a property after foreclosure.
"Texas has one of the fastest foreclosure periods in the nation, and this bill will provide a little more time for homeowners and lenders to reach an accommodation, while still meeting their obligations," said Estes. "The bill also provides more information to the homeowner on their rights under the law and requires the lender to designate the point of contact authorized to work with the borrower on the mortgage default."
Under current law, homeowners receiving a foreclosure notice are allowed just 20 days to resolve their mortgage default before losing their home. The Mortgage Foreclosure Deferment Act extends this notice period to 45 days, and provides at least 14 days for a homeowner to vacate a foreclosed property.
Senate Bill 472 requires a notice of rights to be included with the default notice, and requires the lender to provide the contact information for a person authorized to assist the debtor on the delinquent loan. Also, adds protections for renters of foreclosure property by requiring the property owner to notify within five days their tenants of a pending foreclosure.
Senate Bill 472 will now be returned to the Texas Senate to review amendments added in the Texas House.
"I want to thank the Texas House for their work on this measure, and I look forward to reviewing their suggested changes," said Estes.
Senator Estes is Chairman of the Senate Committee on Agriculture and Rural Affairs, and represents Senate District 30 covering Archer, Baylor, Clay, Collin (part), Cooke, Denton (part), Grayson, Jack, Montague, Parker, Palo Pinto, Shackelford, Stephens, Throckmorton, Wichita, Wilbarger, Wise, and Young counties.