(a) At the time a complaint is filed, the plaintiff shall send each holder that is not named as a party in the action a copy of the complaint with exhibits and a statement that:
(1) The holder is not a party in the proceeding and any judgment in the proceeding will not affect any claim of the holder; and
(2) If the holder elects to appear in the proceeding, the holder will appear as a defendant and be bound by any judgment entered in the proceeding.
(b) The complaint and statement shall be sent by certified mail, return receipt requested, and by first–class mail to the holder:
(1) At the address set forth in the security instrument for the holder’s receipt of notices; or
(2) If no address for the holder’s receipt of notices is set forth in the security instrument, at the last known address of the holder.
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