| (a) Purpose and scope. Under Texas Tax Code, §§32.06(f),
32.06(f-1), and §32.065(b-1), in certain situations where a property
tax loan or preexisting mortgage is delinquent or in default, a holder
or mortgage servicer of a preexisting lien on a property is entitled
to obtain a release of a transferred tax lien, by paying the amount
owed under the contract between the property owner and the property
tax lender. This section describes how to calculate the amount owed
for an individual property where a property tax loan is secured by
more than one property. This section applies only to:
(1) a payoff by the mortgage servicer or holder of
a recorded preexisting lien due to the delinquency of a property tax
loan under Texas Tax Code, §32.06(f);
(2) a payoff by the mortgage servicer or holder of
a preexisting first lien due to the delinquency of the obligation
secured by a preexisting first lien under Texas Tax Code, §32.06(f-1);
and
(3) a payoff by the mortgage servicer of a recorded
lien due to default and notice of acceleration of a property tax loan
under Texas Tax Code, §32.065(b-1).
(b) Effective date. This section applies only to a
property tax loan entered on or after December 1, 2020. This section
does not affect any statutory rights of a lienholder for a property
tax loan entered before December 1, 2020.
(c) Requirement to allow payoff. If a property tax
loan is secured by more than one property, a property tax lender must
allow a holder or mortgage servicer to obtain a release for an individual
property in accordance with Texas Tax Code, §§32.06(f),
32.06(f-1), and §32.065(b-1), by paying the amount owed for the
individual property.
(d) Amount owed for individual property.
(1) Calculation of amount owed. A property tax lender
must calculate the amount owed for an individual property by adding:
(A) the outstanding principal balance of the loan,
multiplied by the attributable percentage for the individual property;
(B) the outstanding interest for the loan, multiplied
by the attributable percentage for the individual property;
(C) authorized post-closing costs that are not part
of the principal balance, multiplied by the attributable percentage
for the individual property, if the costs relate to the property tax
loan generally; and
(D) authorized post-closing costs that are not part
of the principal balance, if the costs relate specifically to the
individual property.
(2) Attributable percentage. To calculate the attributable
percentage for an individual property, a property tax lender must
divide the total amount paid for the individual property by the total
amount paid for all properties in connection with the property tax
loan.
(A) A property tax lender must calculate the total
amount paid for the individual property by adding:
(i) the total amount paid to taxing units or governmental
entities for unpaid taxes, penalties, interest, and collection costs
for the individual property in connection with the property tax loan,
as shown on the tax receipt; and
(ii) in the case of a property tax loan that is a refinance,
any amount paid for the individual property, as shown on the pre-closing
disclosure statement.
(B) A property tax lender must calculate the total
amount paid for all properties by adding:
(i) the total amount paid to taxing units or governmental
entities for unpaid taxes, penalties, interest, and collection costs
for all properties in connection with the property tax loan, as shown
on the tax receipts; and
(ii) in the case of a property tax loan that is a refinance,
the amounts paid for all properties as shown on the pre-closing disclosure
statement.
(3) Lower payoff amount. A property tax lender may
allow a property owner, holder, or servicer to obtain a release for
an amount that is lower than the amount described by paragraphs (1)
and (2) of this subsection.
(4) Post-closing costs. A property tax lender may include
authorized post-closing costs related solely to the individual property
in the amount owed for the individual property. Post-closing costs
related to other individual properties may not be included. Post-closing
costs related generally to the property tax loan may be included if
multiplied by the attributable percentage. If the property tax lender
has charged a post-closing cost that is not expressly authorized by
Texas Finance Code, §351.0021, then the property tax lender may
not include the cost in the amount owed, and must refund the cost
to the property owner.
(5) Recordkeeping. A property tax lender must maintain
documentation showing how it calculated the attributable percentage
and the amount owed for the individual property. This documentation
must be maintained in the property tax loan transaction file for the
period described by §89.207 of this title (relating to Files
and Records Required).
(6) Lien release fee. In addition to the amount owed
for the individual property, a property tax lender may charge a lien
release fee described by §89.602 (relating to Fee for Filing
Release) for each individual property for which a lien is released.
|
