Under Texas Constitution Article XVI, Section 50, a homestead is protected from forced sale for payment of all of the following debts EXCEPT:
Correct Answer
C) Federal income tax liens imposed by the IRS
Federal tax liens imposed by the IRS can be enforced against a Texas homestead because federal law preempts state homestead protections for federal tax debts. Under the Internal Revenue Code, the IRS has the authority to place liens on all property, including homesteads, for unpaid federal taxes.
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Related Concepts
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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A Texas homeowner with a VA loan defaults on payments. The lender initiates foreclosure. Under Texas law, which method of foreclosure is most commonly used for VA loans secured by a deed of trust?
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- → A buyer in Dallas is purchasing a home for $240,000 using an FHA loan with 3.5% down. The annual MIP rate is 0.55% of the base loan amount. What is the monthly mortgage insurance premium for the first month?
- → A Texas lender conducts a non-judicial foreclosure sale, but the notice of sale contained an incorrect legal description of the property. The winning bidder later discovers the error. Under Texas law, what is the likely outcome?
- → A Texas homeowner takes out a home equity loan and later wants to refinance it. Under Texas Constitution Article XVI, Section 50(f), how long must the homeowner wait after the original home equity loan was closed before refinancing?
- → A veteran in Texas is purchasing a home with a VA loan. The property is located in a designated flood zone. Under VA and Texas requirements, which of the following is TRUE?
- → A Texas lender fails to cure a constitutional defect in a home equity loan within the required timeframe. The borrower files a lawsuit. Under Texas Constitution Article XVI, Section 50(a)(6)(Q)(x), what is the potential penalty for the lender's failure to cure?
- → A Texas veteran applies for a land loan through the Texas Veterans Land Board (VLB). The VLB program offers financing for the purchase of at least how many acres of land?
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Previous Question
A Texas lender makes a home equity loan that violates one of the requirements of Texas Constitution Article XVI, Section 50(a)(6). After the loan is made, the lender discovers the violation. Under Texas law, the lender has how many days to cure the defect after being notified by the borrower?
Next Question
In Texas, where must the closing of a home equity loan on a homestead take place?