TITLE: Relating to prohibiting the foreclosure of a lien-free or mortgage-free residence homestead by a local taxing entity.

SUMMARY: Relating to prohibiting the foreclosure of a lien-free or mortgage-free residence homestead by a local taxing entity.

FULL TEXT:
AN ACT relating to prohibiting the foreclosure of a lien-free or mortgage-free residence homestead by a local taxing entity. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 33.06, Tax Code, is amended by adding Subsections (i), (j), and (k) to read as follows: (i) Notwithstanding any other provision of this code, a local taxing entity, including a county, municipality, school district, or special taxing district, may not initiate foreclosure proceedings against a residence homestead if: (1) the homeowner owns the property outright, with no active mortgage, home equity loan, reverse mortgage, or any other recorded lien held by a financial institution or lender; and (2) the homeowner's delinquent property taxes are less than $25,000, including penalties and interest. (j) If the delinquent property taxes exceed the threshold in Subsection (i)(2), the local taxing entity must first offer the homeowner a structured repayment plan of at least five years before initiating foreclosure proceedings. (k) Any property tax debt less than $25,000 that remains unpaid shall be converted into a non-enforceable tax lien that must be satisfied before the property can be sold, transferred, or inherited. SECTION 2. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution.