Under Texas Constitution Article XVI, Section 50, a Texas homestead is protected from forced sale to satisfy most debts. All of the following are liens that may be enforced against a Texas homestead EXCEPT:
Correct Answer
B) An unsecured personal loan judgment lien obtained by a credit union
An unsecured personal loan judgment lien cannot be enforced against a Texas homestead. Texas Constitution Article XVI, Section 50 provides that the homestead is protected from forced sale for the payment of debts except for specific enumerated exceptions. Unsecured consumer debt judgments are not among those exceptions.
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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 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?
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- → 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:
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- → 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?
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Previous Question
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?
Next Question
A Texas borrower with a home equity loan on her homestead wants to make a large lump-sum payment to pay off the loan early. The lender informs her there will be a 3% prepayment fee. Under Texas law, how should the borrower respond?