Garofolo v. Ocwen Loan Servicing, L.L.C.
Garofolo v. Ocwen Loan Servicing, L.L.C., 497 S.W.3d 474 (Tex. 2016)
- Court
- Supreme Court of Texas
- Decided
- 2016-05-20
- Docket
- 15-0437
- Cited by later opinions
- 55
What happened
Ms. Garofolo paid off her home-equity loan, but the servicer did not deliver a release of lien. She sued for forfeiture of all principal and interest under the constitution.
What the court decided
The Texas Supreme Court held that section 50(a)(6) lists terms a home-equity loan must contain for the lender to foreclose; it does not create free-standing rights a borrower can sue on. A remedy may exist through a breach-of-contract claim on the loan's own terms.
In the court's words
“whether a loan complies with the constitution answers only the question of whether the lender may seek a forced sale of the homestead”
Why it may matter to you
It shows how to frame a home-equity problem the right way: as a defense to foreclosure or a breach of the loan contract — not as a stand-alone constitutional lawsuit.
Why it might not apply
It did not decide every contract remedy; the court left room for breach-of-contract forfeiture in other circumstances.
Most useful when
- You want to use a home-equity rule as a stand-alone lawsuit for money
How to cite it
The full citation for the first time you mention it, a short form for later, and a sample sentence you can adapt.
Garofolo v. Ocwen Loan Servicing, L.L.C., 497 S.W.3d 474 (Tex. 2016)Short formGarofolo, 497 S.W.3d 474Draft — check it with free legal aid before you file or say it in court.
In Garofolo v. Ocwen Loan Servicing, L.L.C., 497 S.W.3d 474 (Tex. 2016), the court held that section 50(a)(6) of the Texas Constitution sets the terms a home-equity loan must include for foreclosure to be allowed, rather than creating stand-alone rights enforceable by a separate constitutional claim. Here, [say in one sentence what happened in your case]
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