Rachel, a single homeowner in Austin, Texas, takes out a home equity loan on her homestead. The lender schedules the closing at Rachel's kitchen table with a notary present. Under Texas Constitution Article XVI, Section 50(a)(6), is this closing location permitted?
Correct Answer
B) No, because the closing must take place at the office of the lender, an attorney, or a title company
Under Texas Constitution Article XVI, Section 50(a)(6)(N), the closing of a home equity loan on a homestead must occur at the office of the lender, an attorney, or a title company. The borrower's home is not an approved location.
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Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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- → A Texas property owner defaults on both a first mortgage and a second-lien home equity loan. The first mortgage lender forecloses and sells the property at the trustee's sale. Under Texas law, what happens to the second-lien home equity loan?
- → Under Texas foreclosure law, a property is sold at a trustee's sale on the first Tuesday of the month. The winning bidder pays the full purchase price. Under Texas Property Code, when does the bidder receive a trustee's deed?
- → In Texas, the standard security instrument for real estate loans is a deed of trust rather than a mortgage. Which parties are involved in a Texas deed of trust?
- → Under Texas Constitution Article XVI, Section 50(a)(6), a home equity loan on a Texas homestead must comply with numerous constitutional requirements. All of the following are required provisions of a Texas home equity loan EXCEPT:
- → Under Texas Constitution Article XVI, Section 50, all of the following liens may be enforced against a Texas homestead EXCEPT:
- → A Texas homeowner closes on a home equity loan on January 15. The loan proceeds are not actually disbursed until January 18, three days after closing. The borrower exercises the right of rescission on January 26. Under Texas Constitution Article XVI, Section 50(a)(6), is this rescission timely?
- → 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?
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- → A Texas homeowner wants to add an addition to the home. The contractor's total bid is $85,000. Which of the following must be completed BEFORE work begins for the contractor to have a valid mechanic's lien on the homestead?
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Previous Question
David and Linda own a homestead in Texas valued at $350,000 with no existing liens. A contractor installs new kitchen cabinets but did not obtain a written contract signed by both spouses before beginning work. Under Texas Constitution Article XVI, Section 50, can the contractor place a mechanic's lien on the homestead?
Next Question
Marcus and Keisha close on a home equity loan for their Texas homestead on March 1. On March 10, they decide they want to rescind the loan. Under Texas Constitution Article XVI, Section 50(a)(6), can they still cancel?