In Texas, there are non-judicial foreclosures. When a company loses it corporate charter, can they initiate a foreclosure if you get behind in the mortgage or must they become reinstated before they can conduct a non-judicial foreclosure. On what grounds can you file an improper foreclosure in county or district court and seek an injunction.
State/Country relating to question: Texas
In Texas a corporation with a forfeited charter cannot initiate a legal action. There are a lot of cases on it but two of them are http://scholar.google.com/scholar_case?case=12308568776277095642&q=corporation+forfeit+charter+file+legal+action&hl=en&as_sdt=10000000000004 and http://scholar.google.com/scholar_case?case=4283624250433562349&q=corporation+forfeited+charter+file+foreclosure&hl=en&as_sdt=10000000000004 Also look at this second case for what were discussing yesterday, regarding whether title to property can be transferred by a corporation that has a forfeited charter. The case says it can transfer title as long as there is a right to reinstate the charterThe question then becomes, since it is a non-judicial foreclosure can they pursue that? The search I ran that was most productive can be found at http://scholar.google.com/scholar?start=10&q=corporation+forfeited+charter+file+foreclosure&hl=en&as_sdt=10000000000004 I didn't see anything directly on point, but look for the language in the cases that states when a corporation's charter has been forfeited the corporation loses the right to "do business in the State of Texas". I think it is pretty clear that attempting to foreclose is doing business, so that language helps you. In addition, you will want to make the argument that the foreclosure is a quasi-judicial function since it has to follow the statutes of the State of Texas in its procedures and involves state personnel, the sheriff, when the foreclosure sale takes place.You may want a lawyer to look over all the paperwork to be sure it is kosher. If they don't do it exactly right then the foreclosure is invalid and an injunction is justified. In addition, if the lawyer writes them a letter explaining that the foreclosure is invalid and they try to proceed anyway there is a good chance you can get a judgment for attorney's fees and possibly damages against them.Thank you for allowing me to assist you. As you know, we work on the honor system here and cannot always provide you answers that you like. I believe I have answered all of the questions you asked so I would request that you please click the ACCEPT button so I receive credit for my work and leave feedback if you have a chance. Please consider clicking "BONUS" as a nice way of saying "thanks" for a job well done, although this is neither required nor expected. Please remember that we can only base our answers on the information you provide and sometimes a misunderstanding as to what you are looking for or already know occurs so feel free to ask additional questions or for clarifications. Please be aware that my answer is not legal advice, it is merely information. You should always contact a local attorney for legal advice.Several customers have asked how they direct a question to me in particular. If you specifically want me to provide information for you just put “FOR JD 1992” in the subject line and I will pick up the next time I am online.
Began practicing in 1992 and helped a number of businesses with litigation
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