James and Olivia, a married couple, own a homestead in Dallas, Texas. James wants to obtain a home equity loan, but Olivia refuses to sign the loan documents. The lender suggests that James alone can proceed since the property deed is only in his name. Under Texas law, which statement is correct?
Correct Answer
A) Both spouses must consent to a home equity loan on a Texas homestead, regardless of whose name is on the deed
Under Texas Constitution Article XVI, Section 50(a)(6)(A), a home equity loan on a homestead requires the consent of each owner and each owner's spouse. Even if James is the sole name on the deed, if the property is their homestead, Olivia must consent. Texas homestead protections attach to the marital residence regardless of title.
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A Texas homeowner applies for a home equity loan on March 1 and receives the required disclosure notice the same day. The lender wants to close as quickly as possible. Under Texas law, what is the earliest the lender can disburse the loan proceeds after closing?
- → 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?
- → 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?
- → A Texas homeowner obtained a home equity loan that violated the constitutional requirements under Article XVI, Section 50(a)(6). The lender claims it did not know about the violation. The borrower sends a written notice of the defect to the lender. Under Texas law, which of the following correctly describes the cure and forfeiture process?
- → 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
Patricia receives a home equity loan application from a Texas homeowner on April 1. She processes the loan and presents the final terms on April 5. Under Texas Constitution Article XVI, Section 50(a)(6), when is the earliest the loan can close?
Next Question
A lender discovers that a home equity loan on a Texas homestead was closed in violation of one of the constitutional requirements under Article XVI, Section 50(a)(6). The lender sends the borrower a notice to cure the defect. Under Texas law, how long does the lender have to cure the defect after notifying the borrower?