Home Foreclosures

Last September, the Tennessee legislature passed a huge bill that gave significant relief to homeowners struggling to avoid foreclosure.  The Bill (converted to an Act when it became law) require any lender who desires to foreclose on a deed of trust to first give written notice to it’s borrower (the homeowner) that it had a right to foreclose on the mortgage.  This created a real level of protection Tennessee residents because Tennessee has one of the fastest processes that allows a bank to take away your home in the United States.  Because I file a number of Chapter 13 bankruptcies to help people protect their home from foreclosure, this bill was of significant interest.   If you are facing foreclosure and you live in Knoxville, Maryville, Sevierville or surrounding areas, your house can be foreclosed by your bank in less than 23 days (prior to September 2010).  With the enactment in September of the 60 day notice requirement it would take nearly 90 days to foreclose.  (Note that the 60 day notice would only have to be given once every twelve months.)

So this week we are reminded, “What the legislature given, it also may take away.”  The Tennessee Bankers Association lobbied for and was able to get passed a bill that creates an exemption from sending a 60-day advance notice of foreclosure (SB 1451/HB 1921).  The Exemption Bill passed by unanimous votes on both the Senate and House floor Thursday morning.  Ouch!

Of course the Exemption Bill didn’t get much press.  After all, in order to take advantage of the exemption, the Lender must meet in-person with the borrower within 180 days prior to publishing notice of foreclosure.   Additionally, the Lender must execute an affidavit stating the time and place of the meeting and the affidavit must be attached to the trustee’s deed.

So here’s the deal.  You get behind on your loan at the bank.  Your loan officer calls and asks you to come to the bank to talk about it.  Once you go to the bank and meet with the Lender then for the next 180 days, the bank can foreclose on your loan and take your home away without giving you the benefit of telling you that they intend to exercise their rights to foreclose.  Remember, the legislature has not yet taken away your right to have the notice published in a paper of general circulation in the county in which the property is located for three consecutive weeks (21 days) prior to the sale.  (Watch closely because that protection may be taken away soon.)

The Exemption Bill is going to the Governor’s desk for signature.  It is a bad bill for homeowners in Tennessee.  Your representative in the Tennessee House and Senate voted to away this protection which they enacted last year.  Is that because the press is no longer writing daily about the huge number of foreclosures?

Every day I’m called upon to file a Chapter 13 bankruptcy to help a homeowner in Knoxville, Maryville, Sevierville or Pigeon Forge to keep their home.  The Tennessee Legislature may want to take away real protection for homeowners.  That’s where I come in.  Call today 865-246-1050 so we can discuss how to protect your home from foreclosure.

Photo Credit:  Flickr: Respres