A Texas homeowner has an existing home equity loan and wants to modify its terms rather than refinance. She asks the lender to extend the maturity date and reduce the interest rate. Under Texas Constitution Article XVI, Section 50(a)(6), can the lender modify the existing home equity loan?
Correct Answer
C) Yes, but the modified loan must still comply with all constitutional requirements for home equity loans, and the modification must be executed at an approved closing location
A Texas home equity loan can be modified, but the modified loan must continue to comply with all constitutional requirements under Section 50(a)(6), including the closing location requirement (lender's office, attorney's office, or title company). The modification is treated as a continuation of the original home equity loan.
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The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
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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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Previous Question
A Texas homeowner with an outstanding home equity loan experiences a natural disaster that severely damages his homestead. The property value drops below the outstanding loan balance. Under Texas law, can the lender demand immediate repayment of the home equity loan because the 80% LTV cap is now exceeded?
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A Texas homeowner asks his lender whether a home equity loan on his homestead can be accelerated if he misses payments. Under Texas law, which statement about acceleration of a home equity loan is correct?