Additional Clauses for Deeds of Trust (Home Equity Loan)
Refinance and Extension of Existing Texas Home Equity Deed of Trust
The Note secured by this Security Instrument is given to refinance and extend the amount left owing and unpaid by Grantor upon that one certain Promissory Note in the original principal amount of [amount] DOLLARS ($[amount]), which is dated [date], executed by [name], and payable to the order of [name], secured by a Texas Home Equity Security Instrument from [name] to [name], dated [date] and recorded in [recording data] of the real property records of [county] County, Texas against the Property. Lender is subrogated to all rights and remedies of the holder of the obligations. The lien is hereby refinanced, extended and continued in full force and effect to secure the payment of the Note secured by this Security Instrument. The lien is a lien described in section 50(a)(4), article 16, of the Texas Constitution.
Extension of Mechanic’s Lien Contract and Security for Cash Advanced
The Home Equity Extension of Credit renews and extends the balance of [amount] DOLLARS ($[amount]) that Grantor owes on a prior note in the original principal amount of [amount] DOLLARS ($[amount]), which is dated [date], executed by [name], and payable to the order of [name]. The prior note is secured by a mechanic’s lien contract creating a lien on the Property, dated [date] and recorded in [recording data] of the real property records of [county] County, Texas. [Include if applicable: The prior note and the lien securing it have been transferred to Lender.] The Home Equity Extension of Credit also represents [amount] DOLLARS ($[amount]) in cash that Lender advanced to Grantor on [date] at Grantor’s request. Grantor acknowledges that the lien securing the prior note is valid, that it subsists against the Property, and that by this deed of trust it is renewed and extended in full force until the Home Equity Extension of Credit is paid.
To Pay Ad Valorem Taxes and Security for Cash Advanced
The Home Equity Extension of Credit represents [amount] DOLLARS ($[amount]) in cash that, at Grantor’s request, Lender advanced to pay the following taxes [include if applicable: , including penalties, interest, and collection expenses,] assessed and owed on the Property, which Grantor now owns: [amount] DOLLARS ($[amount]) to [county] County in payment of taxes for the years [specify]; and [amount] DOLLARS ($[amount]) to the city of [city] in payment of taxes for the years [specify]. The Home Equity Extension of Credit also represents [amount] DOLLARS ($[amount]) in cash that Lender advanced to Grantor on [date] at Grantor’s request.
To Pay Income Taxes and Security for Cash Advanced
The Home Equity Extension of Credit includes [amount] DOLLARS ($[amount]) that, at Grantor’s request, Lender advanced to the United States Internal Revenue Service to discharge federal tax lien number [number], which is recorded in [recording data] of the federal tax lien records of [county] County, Texas. Grantor acknowledges this federal tax lien to be valid and subsisting, and the same is renewed and extended by this deed of trust until the Home Equity Extension of Credit is fully paid. This Home Equity Extension of Credit also represents [amount] DOLLARS ($[amount]) in cash that Lender advanced to Grantor on [date] at Grantor’s request.
Tax and Insurance Reserve or Escrow Account
Grantor agrees to make an initial deposit in a reasonable amount to be determined by Lender and then make periodic payments to a fund for taxes and insurance premiums on the Property. Periodic payments will be made on the payment dates specified in the Home Equity Extension of Credit, and each payment will be in an amount that Lender estimates will be sufficient to pay taxes and insurance premiums. The fund will accrue no interest, and Lender will hold it without bond in escrow and use it to pay the taxes and insurance premiums. If Grantor has complied with the requirements of this paragraph, Lender must pay taxes before [the end of the calendar year/delinquency]. Grantor agrees to make additional deposits on demand if the fund is ever insufficient for its purpose. If an excess accumulates in the fund, Lender may either credit it to future periodic deposits until the excess is exhausted or refund it to Grantor. When Grantor makes the final payment on the Home Equity Extension of Credit, Lender will credit to that payment the whole amount then in the fund [include if applicable: or, at Lender’s option, refund it after the Home Equity Extension of Credit is paid]. If this deed of trust is foreclosed, any balance in the fund over that needed to pay taxes, including taxes accruing but not yet payable, and to pay insurance premiums will be paid under section D., “Trustee’s Rights and Duties.” [Include if applicable: If the Property is transferred, any balance then in the fund will still be subject to the provisions of this paragraph and will inure to the benefit of the transferee.] Deposits to the fund described in this paragraph are in addition to the periodic payments provided for in the Home Equity Extension of Credit.
Assignment of Insurance Policies
If the Property is transferred by foreclosure, the transferee will acquire title to all insurance policies on the Property.
Evidence of Payment of Taxes
Grantor agrees to furnish on Lender’s request evidence satisfactory to Lender that all taxes and assessments on the Property have been paid when due.
Consumer Credit Insurance Notice
Grantor may furnish any insurance required by this deed of trust either through existing policies owned or controlled by Grantor or through equivalent coverage from any insurance company authorized to transact business in Texas.
Due-on-Sale Clause
If Grantor transfers any part of the Property without Lender’s prior written consent, Lender may declare the debt secured by this deed of trust immediately payable and invoke any remedies provided in this deed of trust for default. If the Property is residential real property containing less than five dwelling units or a residential manufactured home occupied by Grantor, exceptions to this provision are limited to (a) a subordinate lien or encumbrance that does not transfer rights of occupancy of the Property; (b) creation of a purchase-money security interest for household appliances; (c) transfer by devise, descent, or operation of law on the death of a co-Grantor; (d) grant of a leasehold interest of three years or less without an option to purchase; (e) transfer to a spouse or children of Grantor or between co-Grantors; (f) transfer to a relative of Grantor on Grantor’s death; and (g) transfer to an inter vivos trust in which Grantor is or remains a beneficiary and occupant of the Property.
Subordinate Lien Clauses
The lien created by this deed of trust is subordinate to the lien securing payment of a note, and any renewals, extensions, and modifications thereof, in the original principal amount of [amount] DOLLARS ($[amount]), which is dated [date], executed by [name], payable to the order of [name], and more fully described in a deed of trust recorded in [recording data] of the real property records of [county] County, Texas. If default occurs in payment of any part of principal or interest of that $[amount] note or in observance of any covenants of the deed of trust securing it, the entire debt secured by this deed of trust will immediately become payable at the option of Lender.
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If Grantor fails to pay any part of principal or interest secured by a prior lien or liens on the Property when it becomes payable or defaults on any prior lien instrument, the entire debt secured by this deed of trust will immediately become payable at the option of Lender.