| Volume 124 Number 1 |
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The People’s Lawyer’s Tip of the Day
Are you having a dispute with your Homeowner's Association over a small amount of money? Disputing it could cost you a lot in attorney’s fees and interest if you continue to fight. On the other hand, if you pay it “under protest” you can then sue in justice court to get your money back. This is a good way to get your dispute heard by a judge without adding to your costs. Make sure your payment is clearly marked, "paid under protest." Click here for more.
Wells Fargo Offering New Program for Low Down Payment Mortgages
Last week Wells Fargo announced the yourFirstMortgage program to help low- and moderate-income people and first-time buyers purchase a home. The bank will take into account new sources of credit, such as rent and utility bill payments, to establish credit history. Buyers who put less than 10% down can also qualify for a cut to their interest rate if they are willing to take a homebuyer education class before closing. However, these loans are not backed by the Federal Housing Administration. Click here for more.
Your Money
Consolidating student loans means combining multiple loans into one loan. Typically, people consolidate their loans to simplify monthly payments or get new repayment terms. Loan consolidation isn’t a good idea for everyone. Whether consolidating helps you depends on factors like what type of loans you have, their interest rates, when you took them out, and whether they came with benefits you wouldn’t want to lose. Click here for more.
For the Lawyers
Statute of limitations does not apply to a claim to invalidate a homestead lien under the Texas Home-Equity Law. The Texas Supreme Court recently examined §50(c) of the Texas Constitution, which states, “No . . . lien on the homestead shall ever be valid unless it secures a debt described by this section.” The court noted this language is clear, unequivocal, and binding. The primary issue in the instant case is whether a statute of limitations applied to an action to quiet title where a lien securing a home-equity loan does not comply with constitutional parameters. The parties also disputed whether petitioners were entitled to a declaration that respondents forfeited all principal and interest on the underlying loan. The court concluded that liens securing constitutionally noncompliant home-equity loans are invalid until cured and thus not subject to any statute of limitations. The court also denied the forfeiture claim based on its recent decision in Garofolo v. Ocwen Loan Servicing, in which it explained that §50(a) does not create substantive rights beyond a defense to a foreclosure action on a home-equity lien securing a constitutionally noncompliant loan and that forfeiture is not a constitutional remedy. Wood v. HSBC Bank USA, N.A. (Tex. Sup. Ct). Click here for more.