SB 1202

83(R) - 2013
Business, Industry, & Commerce

Vote Recommendation

  • Neutral
  • Positive
  • Positive
  • Positive
  • Neutral


Royce West

Bill Caption

Relating to an order to conduct mediation following an application for expedited judicial foreclosure proceedings.

Fiscal Notes

No fiscal implication to the State is anticipated. No fiscal implication to units of local government is anticipated.

Bill Analysis

Summary: Currently, homeowners who are seeking a loan modification face challenges when a foreclosure is expedited. A hearing for mediation would assist the judge in deciding whether or not a homeowner can pursue a loan modification. Under current law, the requirement for a hearing under Rule 736 of Texas Rules of Civil Procedure is nebulous in helping a judge to know when and how to grant mediation and maintain cohesion with due process.

SB 1202 would allow the court where the petition for expedited foreclosure is filed to order a hearing to determine the need for mediation. This legislation would specify how and when a hearing can take place.

Analysis: This legislation would provide the judge with more definition to know when and how to obtain the information needed to determine a correct ruling on behalf of the homeowner and mortgage lender. Furthermore, the potential for mediation would give the stakeholders the opportunity to thoroughly relay their case and provide homeowners with the opportunity to adjust their loan requirements to make the payments for which they are responsible. We support SB 1202.