Monday, November 19, 2007 - URGENT INFO ABOUT TX CASHOUT LAWS - Effective Dec 4

As you may know, Constitutional Amendment HJR 72, which amends the Texas home equity provisions in Article 16, Section 50 of the Texas Constitution, approved by the voters on November 6, 2007, will take effect on December 4, 2007 (the date of the official vote canvass by the governor confirming statewide majority approval).

1. The revised 12-day notice cannot be used for TX home equity loans closing prior to December 4, 2007.

2. For Texas home equity loans that will close on and after December 4, 2007, and for which the pre-December 4, 2007 12-day notice was provided prior to December 4, 2007, we recommend that the revised 12-day notice required by HJR 72 be given to the owner of the homestead on or after December 4, 2007, and that the loan not close until a new 12-day notice period has expired.

Yes, that means that if you don't close and fund your loan by Dec 3^rd, you will need to re-disclose on Dec 4^th and wait another 12 days. So the loan cannot close until the 15^th, which is a Saturday meaning, you can't close really until Monday the 17^th. WATCH YOUR LOCKS!!!!

PRE-CLOSING - The updated laws go on to say that along with that required final version of the HUD 1 day prior to closing, you must also provide a final loan application (1003)

POST-CLOSING - The law also was amended to say that a borrower must receive a copy of the SIGNED final loan application and all executed documents SIGNED by the owner at closing related to the loan.