This is the first of several legislative updates prepared by this firm and summarizes those bills effective before September 1, 2009, that we consider of interest to our clients. The legislative updates that follow this update will summarize, respectively, (i) those bills that we consider important enough to be the subject of a separate legislative update, and (ii) bills effective on and after September 1, 2009, that we consider of interest to our clients. 1. Foreclosure of Dwelling of Active Duly Member of the Military (HB 3857): (1) Overview. Currently, when military servicemembers are ordered to active duty, certain financial protections are provided at the federal level through the Servicemembers Civil Relief Act (50 U.S.C. App. Sections 501, et seq.). House Bill 3857 attempts to give servicemembers who have dwellings in Texas the same level of protection by adding Section 51.015 to Chapter 51 of the Property Code to (i) allow for an active duty military servicemember (and a non active duty servicemember during the nine months after the date on which active duty service concluded) to either temporarily stay a judicial foreclosure proceeding or adjust the servicemember’s obligations under a contract secured by a dwelling located in Texas, and (ii) prohibit a foreclosure of a dwelling under a deed of trust or other contract lien from being conducted during the servicemember’s active duty or during the nine months after the date on which active duty service concluded.
