Wood v. HSBC Bank USA, N.A.
Wood v. HSBC Bank USA, N.A., 505 S.W.3d 542 (Tex. 2016)
- Court
- Supreme Court of Texas
- Decided
- 2016-05-20
- Docket
- 14-0714
- Cited by later opinions
- 74
What happened
The Woods took a home-equity loan on their Texas homestead that, they said, did not follow the Texas Constitution's rules. They sued years later to quiet title, and the lender said they were too late.
What the court decided
The Texas Supreme Court held that a lien that does not comply with the constitution is not valid until cured, and no statute of limitations bars a homeowner's suit to quiet title against it. It rejected the four-year limit federal courts had applied in Priester.
In the court's words
“This language is clear, unequivocal, and binding.”
Why it may matter to you
Texas gives home-equity borrowers some of the strongest protections in the country. If your loan broke one of those rules, this case says time alone does not erase your right to challenge it.
Why it might not apply
The lender can still cure many defects (for example, by refunding an overcharge) after notice, and forfeiture claims are different from quiet-title claims. Home-equity law is technical; talk to a lawyer.
Most useful when
- You have a Texas home-equity (cash-out) loan
- The loan broke a constitutional rule when it was made, even many years ago
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.
Wood v. HSBC Bank USA, N.A., 505 S.W.3d 542 (Tex. 2016)Short formWood, 505 S.W.3d 542Draft — check it with free legal aid before you file or say it in court.
In Wood v. HSBC Bank USA, N.A., 505 S.W.3d 542 (Tex. 2016), the court held that a home-equity lien that does not comply with Article XVI, section 50 of the Texas Constitution is invalid until cured, and no statute of limitations bars the homeowner's action to quiet title. Here, [say in one sentence what happened in your case]
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