A Texas homeowner obtains a home equity loan but the lender fails to provide the constitutionally required notice that the borrower is not required to complete the loan. Under the Texas Constitution, what is the consequence?
Correct Answer
C) The lien is voidable, and the lender must cure the deficiency within 60 days after receiving written notice from the borrower, or forfeit the lien and all principal and interest
Under Texas Constitution Article XVI §50(a)(6)(Q)(x), if a home equity loan fails to comply with any of the constitutional requirements (including required notices), the lien is voidable. The lender has 60 days to cure the deficiency after receiving written notice from the borrower. If the lender fails to cure, the borrower may obtain a court order forfeiting all principal and interest on the loan.
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A Texas license holder is advising a buyer who wants to purchase a home using a VA loan. The buyer asks whether the Texas homestead protections apply in addition to federal VA loan protections. What is the correct answer?
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A Texas homeowner with an urban homestead wants to sell one acre of their 10-acre homestead to a developer while continuing to reside on the remaining 9 acres. Under Texas law, can the homeowner do this?