Sec. 51.007. TRUSTEE UNDER DEED OF TRUST, CONTRACT LIEN OR SECURITY INSTRUMENT. (a) The trustee named in a suit or proceeding may plead in the answer that the trustee is not a necessary party by a verified denial stating the basis for the trustee's reasonable belief that the trustee was named as a party solely in the capacity as a trustee under a deed of trust, contract lien, or security instrument.
(b) Within 30 days after the filing of the trustee's verified denial, a verified response is due from all parties to the suit or proceeding setting forth all matters, whether in law or fact, that rebut the trustee's verified denial.
(c) If a party has no objection or fails to file a timely verified response to the trustee's verified denial, the trustee shall be dismissed from the suit or proceeding without prejudice.
(d) If a respondent files a timely verified response to the trustee's verified denial, the matter shall be set for hearing. The court shall dismiss the trustee from the suit or proceeding without prejudice if the court determines that the trustee is not a necessary party.
(e) A dismissal of the trustee pursuant to Subsections (c) and (d) shall not prejudice a party's right to seek injunctive relief to prevent the trustee from proceeding with a foreclosure sale.
(f) A trustee shall not be liable for any good faith error resulting from reliance on any information in law or fact provided by the mortgagor or mortgagee or their respective attorney, agent, or representative or other third party.
Added by Acts 1999, 76th Leg., ch. 1304, Sec. 1, eff. Sept. 1, 1999.
Structure Texas Statutes
Title 5 - Exempt Property and Liens
Chapter 51 - Provisions Generally Applicable to Liens
Section 51.001. Effect on Other Liens
Section 51.0011. Default Arising From Delinquent Ad Valorem Taxes: Installment Agreements
Section 51.002. Sale of Real Property Under Contract Lien
Section 51.0021. Notice of Change of Address Required
Section 51.0025. Administration of Foreclosure by Mortgage Servicer
Section 51.003. Deficiency Judgment
Section 51.004. Judicial Foreclosure--Deficiency
Section 51.005. Judicial or Nonjudicial Foreclosure After Judgment Against Guarantor--Deficiency
Section 51.006. Deed-of-Trust Foreclosure After Deed in Lieu of Foreclosure
Section 51.007. Trustee Under Deed of Trust, Contract Lien or Security Instrument
Section 51.0074. Duties of Trustee
Section 51.0075. Authority of Trustee or Substitute Trustee
Section 51.0076. Effective Date of Appointment
Section 51.008. Certain Liens on Real Property
Section 51.009. Foreclosed Property Sold "As Is"
Section 51.015. Sale of Certain Property Owned by Member of the Military