Texas Senator Introduces Foreclosure Deferment Act

Posted by Orb Staff on January 15, 2009 No Comments
Categories : Mortgage Servicing

Texas State Sen. Craig Estes, R-Wichita Falls, has filed Senate Bill 472 – the Mortgage Foreclosure Deferment Act – to extend the time for homeowners facing foreclosure to resolve a mortgage default and provide more time to vacate a property after foreclosure.

Under current law, homeowners receiving a foreclosure notice are allowed 20 days to resolve their default before losing their home. The Mortgage Foreclosure Deferment Act extends this notice period to 45 days, and provides at least 30 days for a homeowner to vacate a foreclosed property.

‘The most recent figures made available by the Mortgage Bankers Association reveal that at least one in 10 Texas homeowners is at risk of losing their homes to foreclosure,’ says Estes. ‘Texas homeowners need more time to try and reach an accommodation with their lender in an effort to stay in their homes, while meeting their financial obligations.’

The bill also seeks to add protections for renters of foreclosed property by requiring property owners to notify their tenants of a pending foreclosure within seven days.

SOURCE: The Office of Sen. Craig Estes

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