A Texas home equity borrower is 5 months behind and the servicer wants to post the property for a trustee sale. What additional judicial authorization is required before foreclosing this home equity lien?
Correct Answer
B) A court order is required before the lien may be foreclosed on
A home equity lien may be foreclosed upon only by court order, which is why Texas home equity foreclosures run through an expedited judicial proceeding rather than the non-judicial process used for ordinary liens. Other choices: the 21-day notice belongs to the non-judicial process this loan is excluded from; the requirement does not wait for the owner to contest anything; and a power of sale in the deed of trust cannot override the constitution. Source: Tex. Const. art. XVI, sec. 50(a)(6)(D)
Why This Is the Correct Answer
A home equity lien may be foreclosed upon only by court order, which is why Texas home equity foreclosures run through an expedited judicial proceeding rather than the non-judicial process used for ordinary liens. Other choices: the 21-day notice belongs to the non-judicial process this loan is excluded from; the requirement does not wait for the owner to contest anything; and a power of sale in the deed of trust cannot override the constitution. Source: Tex. Const. art. XVI, sec. 50(a)(6)(D)
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