Finance
Under the Texas Home Equity Loan rules, if a homeowner fails to make payments and the lender seeks to foreclose, the foreclosure must be through:
ANon-judicial foreclosure as with regular deeds of trust
BA court order (judicial foreclosure) as required by the Texas Constitution for home equity loans✓ Correct
CTREC mediation
DThe Texas Foreclosure Prevention Fund
Explanation
Unlike regular deeds of trust (non-judicial foreclosure), Texas Constitutional Article XVI § 50(a)(6) requires that home equity loans be foreclosed through judicial proceedings (court order). This provides additional procedural protection for homestead owners.
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