It shouldn't be any longer. It has been a problem for some of my clients because of the many consumer protection provisions of the Texas Constitution, as they relate to home equity loans.

On certified questions from the 5th Circuit Court of Appeals on a pending class action, the Texas Supreme Court delivered an opinion on May 16, 2014 that it is NOT a violation of the Texas Constitution to modify a Texas home equity loan, so long as "the original note is not satisfied and replaced, and there is no additional extension of credit, as we define it, the restructuring is valid and need not meet the constitution requirements for a new loan." Sims v. Carrington Mortgage Services, LLC, Tex. Sup. Ct. 2014.

This is wonderful news for several of my clients, some of whom will now be able to get their home equity loans modified, keep their homes from foreclosure, and in some cases reduce the interest rates from 10% to 2-5%, for example.

J Thomas Black
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Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization