SECTION 89.801. Requests for Payoff Statements

(a) Scope. This section applies to a request described by Texas Tax Code, §32.06(a-6) that:

(1) includes a request for the total payoff amount of a property tax loan;

(2) is sent to a property tax lender; and

(3) is sent by:

(A) the holder of an existing recorded lien on the property subject to the property tax loan; or

(B) a mortgage servicer (or another person) on behalf of a lienholder described by subparagraph (A) of this paragraph.

(b) Required elements. A request under this section must include:

(1) the date of the request;

(2) the requested balance date, which must be:

(A) no earlier than 7 days after the date of the request; and

(B) no later than 30 days after the date of the request;

(3) the name and address of the lienholder that is making the request (or on whose behalf the request is made);

(4) the name of the property tax lender;

(5) the name of the borrower;

(6) the address or a legal description of the property subject to the property tax loan;

(7) one of the following:

(A) the tax account number used by the taxing unit(s);

(B) the property identification number used by the taxing unit(s); or

(C) the property tax loan number used by the property tax lender;

(8) a statement substantially similar to the following: "We (the lienholder) request a statement of the total amount due under the property tax loan on the property listed above, as of the requested balance date. We hold an existing recorded lien on the property.";

(9) a valid delivery method by which the property tax lender must deliver the payoff statement. The lienholder must choose only one delivery method, and the delivery method must be one of the following:

(A) a mailing address;

(B) a fax number; or

(C) an e-mail address;

(10) a statement certifying the purpose for which the lienholder is requesting the payoff statement, substantially similar to one of the following:

(A) "We are requesting a payoff statement for informational purposes under Section 32.06(a-6) of the Texas Tax Code. The payoff statement should be delivered to us within 7 business days of when you receive this request, unless Title 7, Section 89.802 of the Texas Administrative Code provides otherwise.";

(B) "We are requesting a payoff statement because we have the right to pay off the property tax loan under Section 32.06(f) of the Texas Tax Code. Within the last six months, we received notice that the property tax loan was delinquent for at least 90 consecutive days.";

(C) "We are requesting a payoff statement because we have the right to pay off the property tax loan under Section 32.06(f-1) of the Texas Tax Code. We are the holder of a preexisting first lien on the property that was delinquent for at least 90 consecutive days and referred to a collection specialist. Within the last six months, we notified the property tax lender of the delinquency in compliance with the Texas Tax Code."; or

(D) "We are requesting a payoff statement because we have the right to pay off the property tax loan under Section 32.065(b-1) of the Texas Tax Code. The property owner defaulted on the property tax loan and received a notice of acceleration."; and

(11) the signature of the lienholder or the lienholder's representative.

(c) Permissible elements. A request under this section may include:

(1) additional contact information for the requesting lienholder;

(2) the name, address, and contact information of the mortgage servicer (or another person who sends the request on the lienholder's behalf);

(3) the name of one or more co-borrowers on the property tax loan;

(4) the address of the property tax lender; and

(5) reasonable additional instructions regarding delivery of the payoff statement.

(d) Method of delivery. The request must be delivered by one or more of the following methods:

(1) U.S. mail with prepaid first-class postage;

(2) U.S. certified mail with return receipt requested;

(3) a commercial delivery service with tracking abilities;

(4) a courier service;

(5) fax to a number designated by the property tax lender for receiving requests for payoff statements; or

(6) e-mail to an address designated by the property tax lender for receiving requests for payoff statements.

Source Note: The provisions of this §89.801 adopted to be effective November 7, 2013, 38 TexReg 7693