Legal Question in Consumer Law in Texas

Laws concerning debtors attempts to pay a debt

I have heard that in the state of Texas, as long as you make an attempt to pay on a debt, that the debt holder can not initiate any actions against the debtor. I need to know if this is true and what the actual statute is stating this.

Our home loan, was set up for my husbands retirement to pay the mortgage, as an allotment. It appears that in Feb. of 05, they decided to add an escrow account and demanded over $2000. There was no previous warning for this. According to the statement it was to pay a hazard insurance, but we already had home owners insurance. They pulled again out of this escrow to pay property and school taxes, after I had made arrangements with the tax offices to make the payments, making the payment due well over $4000. They contacted the Military retirement agency handling the payments and told them that more money was needed. The govt, because it was not authorized by the retiree, stopped all payments in Nov. The finance co. contacted us in Dec. 05 for the first time on the issue, after not recieveing payment in Nov. and Dec. The finance Co. is threatening forclosure, and constantly changing their story. We can pay the orig amount of $650. If we make the contracted payment, can they foreclose?


Asked on 1/21/06, 5:16 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Laws concerning debtors attempts to pay a debt

The law says that the only payment a creditor must accept is the complete payment. They are under no duty to accept partial payment.

Please carefully go over the paperwork on your loan to see if they have the right to escrow for taxes and insurance. I would expect that they do, since that protects their security interest in your house.

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Answered on 1/22/06, 1:19 pm


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