A Texas homeowner entered into a home equity loan in 2020. In 2025, the homeowner discovers the lender failed to comply with one of the constitutional requirements for home equity loans under Article XVI §50(a)(6). Under Texas law, what is the homeowner's remedy?
Correct Answer
D) The lien is void, but the lender has 60 days to cure the deficiency after receiving notice from the borrower before the lien becomes permanently void
Under Texas Constitution Article XVI §50(a)(6)(Q)(x), if a home equity loan fails to comply with the constitutional requirements, the lien is invalid. However, the lender has a right to cure: the borrower must provide notice of the noncompliance, and the lender has 60 days to cure the deficiency. If the lender fails to cure within 60 days, the lien is forfeited, and the borrower's obligation to repay the principal and interest may be affected.
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- → A Texas homeowner defaults on a personal loan of $50,000. The creditor obtains a judgment and seeks to force the sale of the homeowner's primary residence to satisfy the debt. Under Texas homestead law, can the creditor force the sale?
- → A creditor attempts to place a lien against a Texas family's homestead for an unpaid medical bill of $25,000. Under Texas homestead law, can this lien attach to the homestead?
- → A Texas homeowner converts their homestead into a rental property and moves to another state. After two years, a creditor seeks to foreclose on the former homestead for an unpaid business debt. Under Texas law, can the creditor force the sale?
- → Mark and Lisa are married and live in Texas. During their marriage, Mark purchases an investment property using earnings from his salary. Under the Texas Family Code, how is this property classified?
- → Before her marriage to David, Sarah owned a rental house in Austin. After the wedding, rental income from the property accumulates in a joint bank account. Under the Texas Family Code, how is the rental income classified?
- → Under the Texas Family Code, what is the legal presumption regarding property acquired during a marriage in Texas?
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Previous Question
A Texas homeowner owns both a house in Austin (where they live) and a lakehouse in the Hill Country (used for weekend retreats). Under Texas homestead law, which property qualifies for homestead protection?
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Under Texas homestead law, which of the following is NOT a requirement for a valid home equity loan on a Texas homestead?