Texas Finance Code 159.202 – Wrap Borrower’s Right to Deduct
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Terms Used In Texas Finance Code 159.202
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgage loan: A loan made by a lender to a borrower for the financing of real property. Source: OCC
The wrap borrower, without taking judicial action, may deduct from any amount owed to the wrap lender under the terms of the wrap mortgage loan:
(1) the amount of any payment made by the wrap borrower to an obligee of a debt described by § 159.001(7)(A)(ii) to cure a default by the wrap lender caused by the lender’s failure to make payments for which the lender is responsible under the terms of the wrap mortgage loan; or
(2) any other amount for which the wrap lender is liable to the wrap borrower under the terms of the wrap mortgage loan.