Texas legislators recently approved a bill that looks out for active military personnel who also own a home.
Senate Bill 101, which was passed by the House and Senate this week and now must be signed by the governor to make it official, would amend the current Service Member's Civil Relief Act to protect these active members against potential foreclosures.
The bill, sponsored by Democratic San Antonio Senator Leticia Van de Putte, comes in response to a well-discussed event last year, when a Dallas-based homeowners association foreclosed on a property owned by an Army National Guard captain that was stationed in Iraq. The foreclosure occurred because the captain apparently owed $3,500 in HOA fees, even though his mortgage had already been fully paid off.
The event sparked national scrutiny from media members regarding the power of HOAs.
The new bill will help protect military members against nonjudicial foreclosures, which involves any method outside of court to foreclose on Texas-based homes.
The number of foreclosed Houston properties declined recently, falling 12.7 percent. The passage of this bill could further reduce the number of bank repossessions.
Courtesy of 2M Realty News