🔴Relating to the persons authorized or appointed to exercise the power of sale under the terms of a contract lien on real property

🔴 SB 372: Expands Foreclosure Trustee Power to Corporations

What it says it does:
SB 372 claims to clarify who can serve as a trustee in a property foreclosure, stating that the definition of “person” should include both individuals and legal entities.

What it actually changes:
It rewrites the definition of trustee and substitute trustee to allow corporations, banks, government agencies, and other entities to manage foreclosure sales. Before this change, trustees were understood to be individual people who carried fiduciary responsibility.

Who is pushing for it:
The bill was authored by Sen. Donna Campbell. Testimony in the record shows support from Auction.com, a national foreclosure platform that benefits directly from broader trustee authority.

Who benefits:
Banks, mortgage servicers, and foreclosure companies gain new authority to conduct and control sales without naming an individual trustee. It makes the process faster and less risky for lenders and corporate platforms.

Who gets left out or exposed:
Homeowners lose the protection of a named person responsible for handling their foreclosure. Local courts and communities also lose a degree of oversight since foreclosures can now be run by out-of-state entities.

Why this matters long term:
This change shifts property enforcement power from people to institutions. It normalizes corporate control of foreclosure law and makes accountability more difficult. Once this structure is in place, reversing it will be hard because it is framed as “efficiency.”

What to watch next:
Watch for future bills that expand similar language to other property or lending laws. Also watch whether corporate trustees begin handling large volumes of foreclosures with limited transparency or homeowner contact.

Bottom line:
SB 372 looks like a minor clarification, but it removes one of the few personal accountability safeguards left in foreclosure law. It quietly tilts property rights toward corporations and away from Texans facing financial hardship.

#SB372 #TexasPolicy #TexasHousing #ForeclosureLaw #StayInformed