Real Estate
We prepare real estate documents. We represent clients in Forclosures.
"Helping to build the cities of El Paso, Texas, Las Cruces, New Mexico, and Juarez, Mexico one family at a time"
Anderson, Anderson, Bright & Crout, P.C.
El Paso, Texas 79936
PHONE (915) 595-1380 or (915) 581-4600
FAX (915) 591-6201 or (915) 592-2363
Document Preparation
- SUBJECT TO DEED
- WARRANTY DEED WITH VENDOR'S LIEN
- CASH WARRANTY DEED \ SPECIAL WARRANTY DEED
- QUITCLAIM DEED (we suggest never to use)
- BUILDER'S WARRANTY DEED WITH VENDOR'S LIEN
- ASSUMPTION WARRANTY DEED
- ASSUMPTION WARRANTY DEED WITH VENDOR'S LIEN
- PROMISSORY NOTE
- DEED OF TRUST
- COMMERCIAL DEED OF TRUST
- DEED OF TRUST TO SECURE ASSUPTION
- WRAP DEED WITH VENDOR'S LIEN
- WRAP NOTE
- MECHANICS LIEN PACKAGES
- RENEWAL & EXTENSION NOTE
- RENEWAL & EXTENSION DEED OF TRUST
- RELEASE OF LIEN (S)
- TRANSFER OF LIEN (S)
- AFFIDAVIT (NAME AFFIDAVIT & AFFIDAVIT OF HEIRSIP)
- SUBORDINATION AGREEMENT
- VA OR FHA NOTE AND DEED OF TRUST
- POWER OF ATTORNEY (SALE / PURCHASE)
- MUD NOTICE
- EARNEST MONEY CONTRACT
- HOME EQUITY PACKAGES
Foreclosures
Nonjudicial Real Property Foreclosures
On the first Tuesday of every month, dozens of real property owners in El Paso lose their homes or other real property because they have failed to make their payments required under a Deed of Trust.A real property owner in Texas canborrow money against their real property by executing a Deed of Trust for the benefit of the lender.If the borrower defaults on the loan, then the lender may foreclose on the real property and the trustee designated in the Deed of Trust or asubstitute trustee appointed by the lender may sell the real property at a foreclosure sale without having to go to court.The lender and trustee must however strictly comply with the provisions of the Deed of Trust and Chapter 51 of the TexasProperty Code which governs nonjudicial real property foreclosures.Texas is a "Deed of Trust" state not a "Mortgage state".In a "Deed of Trust state", a lender can foreclose under a Deed of Trust without having to go to court.In a "Mortgagestate", a lender must go to court to foreclose under a Mortgage.
Nonjudicial Foreclosure Process.When a borrower defaults on a loan secured by a Deed of Trust against the borrower's real property, the lender may then begin the process to foreclose on the real property.1) If the real property is residential, then the lender must send notice of the default to the borrower and give the borrower at least 20 days to cure the default before the lender accelerates the note.2) If the borrower does not cure the default, then the lender must give notice of the foreclosure sale at least 21 days prior to the foreclosure sale a) by giving notice to each debtor who is obligated to pay the debt b) by posting the notice of foreclosure at the courthouse of the county in which the real property is located and c) by filingthe notice in the office of the county clerk in which the real property is located.3) After the expiration of the 21-day period the trustee or substitute trustee conducts the foreclosure sale on the first Tuesday of the month as designated in the notice of foreclosure. A foreclosure sale must be a public sale at auction held between 10:00 a.m. and 4:00 p.m. on the first Tuesday of a month. The highest bidder at a foreclosure sale must pay in cash on the day of the foreclosure sale the amount of the bid to the trustee or substitute trustee. A lender may bid at the foreclosure sale the amount of the unpaid debt and expenses incurred in lieu of cash if it chooses.
Liens wiped out by Foreclosure Sale. A foreclosure sale under a Deed of Trust will extinguish the following liens which encumber the real property: 1) Abstracts of Judgments that are recorded after the date of the Deed of Trust or Abstracts of Judgments that are recorded before the date of the Deed of Trust if the Deed of Trust was for purchase money; 2) Federal Tax liens recorded more than 30 days before the foreclosure sale if the IRS is given notice of the foreclosure sale. If the IRS is not given notice, then the Federal Tax lien survives the foreclosure and remains a lien against the real property.If a federal tax lien is extinguished, then the IRS has a right to redeem the property within 120 days of the foreclosure sale.If aFederal Tax lien is filed less than 30 days before the foreclosure sale or after the foreclosure sale, it is extinguished or does not attach against the real property. 3) state tax liens and 4) Mechanic and Materialmen Liens except for lien claimsinvolving removables.
Stopping a Foreclosure Sale.A borrower may stop or delay a foreclosure sale by filing for a temporary injunction in state district court to stop a wrongful foreclosure or by filing bankruptcy.If the borrower files for bankruptcy, then an automatic stay goes into effect. The lender must obtain a lift of the automatic stay from the bankruptcy court before they can foreclose on the real property.A borrower may set aside a wrongful foreclosure if the borrower files suit within 4 years of the foreclosure sale.
Contract for Deed
The Top 13 Reasons Not to Use a Contract for Deed in
El Paso County
A contract for deed is an agreement for the sale of real property from a seller to a buyer which is financed by the seller. The buyer takes possession of the property upon signing the contract for deed.The buyer makes payments to the seller in monthly installments under the terms of the contract for deed (usually 10 to 20 years).When the buyer completes the payments then the seller conveys the property to the buyer by a warranty deed.A contract for deed is often used by developers to sell housing to lower income families in lieu of the more traditional seller financing documents (Warranty Deed with Vendors Lien, Note and Deed of Trust).
Effective on September 1, 1995, the Texas Legislature imposed additional requirements for using a contract for deed covering residential property in certain counties in Texas.Counties located within 200 miles of an international border (Mexico) and with a per capita income that averaged 25% below the state average for three years are subject to the additional requirements.The new law imposes the following requirements for a contract for deed covering residential property in these counties, including El Paso County, and thereby discourages their use by developers or other sellers.
1) WRITTEN NOTICE.Before a contract for deed is signed by the buyer, the seller must provide the buyer with a written notice that contains certain information about the property such as water service, sewer service, electric service, property taxes, liens and current ownership.
2) SURVEY.Before a contract for deed is signed by the buyer, the seller must provide the buyer with a recent survey of the property.
3) COPIES OF DOCUMENTS.Before a contract for deed is signed by the buyer, the seller must provide the buyer with copies of any document that describes an encumbrance or other claim, including a restrictive covenant or easement, that affects title to the property.
4) SPANISH LANGUAGE.If the negotiations that precede the execution of a contract for deed are conducted primarily in Spanish, the seller must provide a copy in Spanish of all written documents relating to the transaction.
5) SELLER?S DISCLOSURE OF FINANCING TERMS.Before a contract for deed is signed by the buyer, the seller must provide the buyer with a written statement that specifies:
a) the purchase price of the property
b) the interest rate charged under the contract
c) the dollar amount, or an estimate of the dollar amount if the interest rate is variable, of the interest charged for the term of the contract
d) the total amount of principal and interest to be paid under the contract
e) the late charge, if any, that may be assessed under the contract and
f) no prepayment penalty may be charged.
6) LATE PAYMENT PENALTY.A seller may not impose a late payment penalty in a contract for deed of more than 8% of the monthly payment or the actual administrative cost of processing the late payment whichever is less.
7) BUYERS RIGHT TO PLEDGE INTEREST.A seller may not prohibit the buyer from pledging their interest under the contract for deed as security to obtain a loan to place improvements on the property.
8)NO PREPAYMENT PENALTY. A seller may not impose a prepayment penalty if the buyer elects to pay the entire amount due under the contract for deed.
9) BUYERS RIGHT TO CANCEL WITHOUT CAUSE.A buyer may cancel a contract for deed for any reason within 14 days after the date of the contract for deed.If the contract for deed is canceled by the buyer, the seller must return all payments made by the buyer within 10 days.
10) RECORDING.A seller must record the contract for deed in the deed records of the county where the property is located.If the contract for deed is terminated, then the seller must record the document terminating the contract for deed.
11) ANNUAL ACCOUNTING STATEMENT.The seller must provide an annual statement to the buyer in January of each year for the term of the contract for deed.The annual statement must contain the following information: a) the amount paid under the contract b) the remaining amount owed under the contract c) the number of payments remaining under the contract and d) the amounts paid to taxing authorities on the buyers behalf if collected by the seller.
12) EQUITY PROTECTION.If a buyer has paid more than 40% of the amount due under the contract for deed or made 48 monthly payments, then the seller may only terminate the contract for deed by foreclosing on the contract for deed in a similar manner as a beneficiary under a deed of trust.However, the seller must give the buyer 60 days notice to cure the default instead of the 20 days notice to cure default required to foreclose under a deed of trust.
13) TITLE TRANSFER.The seller must convey title to the buyer within 30 days after the final payment due under the contract is made.If the seller does not comply, then the seller is subject to a penalty of $250 per day for each day after the 30th day and $500 for each day after the 90th day after the final payment due under the contract is made.
These requirements are designed to protect the buyers under a contract for deed and have made it very burdensome for developers or other sellers to use a contract for deed in sellingresidential property.
