This legislative update summarizes those bills effective before September 1, 2013, that we consider of interest to our clients. The legislative updates that follow this update will summarize the following bills that we consider of interest to our clients: (i) bills effective on and after September 1, 2013, and (ii) proposed constitutional amendments and, if applicable, their enabling legislation. BILLS EFFECTIVE BEFORE SEPTEMBER 1, 2013 1. AMENDMENTS TO PROCEDURES FOR EXPEDITED JUDICIAL FORECLOSURE PROCEEDINGS (HB 2978) House Bill 2978 amends the citation procedures for expedited judicial foreclosure proceedings under Rule 736 of the Texas Rules of Civil Procedure. Rule 736 establishes the procedure for obtaining an expedited court order to allow foreclosure of a lien containing a power of sale in the security instrument creating the lien that secures a home equity loan, reverse mortgage, or home equity line of credit under article XVI, sections 50(a)(6), 50(k), and 50(t) of the Texas Constitution. For service of notice of the application for an expedited order to be considered complete, the rule requires the court clerk to issue a separate citation to each named respondent and one additional citation for the occupant of the property sought to be foreclosed. The clerk must serve each citation by both first class mail and certified mail. The rule does not require return of the certified mail receipt, but many courts, citing constitutional concerns for due process, have held that service through certified mail is not complete until the delivery receipt has been returned to the court. To alleviate this problem, House Bill 2978 adds Section 17.031 to the Civil Practice and Remedies Code to require service of notice to be considered complete when a respondent in an expedited order for a foreclosure proceeding received a citation via mail according to Rule 736, or in accordance with 106 or in any other manner provided for petitions under the Texas Rules of Civil Procedure. Download complete memorandum below
