Tennessee recently changed two laws that affect foreclosures. One bill makes a full legal description (known as "metes and bounds" description) unnecessary in a public notice of a foreclosure, while the second bill removed the requirement to send a 60-day Right of Foreclosure notice to borrowers.
Removing the full legal description from a foreclosure notice will lower costs to banks, Rep. Jimmy Matlock, R-Lenoir City, who sponsored the bill, told the Knoxville News Sentinel. Banks must now only post a "common" description of a property, which in essence is the street address, map and parcel number, with a reference to the page of the deed that contains a full legal description. In addition, the bill also lowers the number of times a bank must publicly disclose the notice of foreclosure, from three down to two.
While the bill passed by a large majority, some are critical of the new law. Struggling homeowners occasionally still find out about their foreclosure through the newspaper posting.
This is especially true now that banks are no longer required to give a 60-day notice to borrowers regarding the intent to foreclose if certain conditions are met. For example, if a trustee or agent of the lender met with a borrower 180 days prior to the first publication in the newspaper telling the borrower of the possibility of foreclosure, then the 60-day notice requirement is waived. While the lender must show evidence of this discussion by written affidavit, some worry that the loosening of restrictions regarding foreclosure might make it easier for borrowers to be caught unaware of pending foreclosures.
Foreclosure Postponements
As part of the bill, the Tennessee legislature also clarified when a postponement of a foreclosure can occur. The requirements are:
- Foreclosures can only be postponed for up to a year
- Postponements must be to a specified date and time, and must be announced publicly
- Postponements of 30 days or more require written notice ten days prior to the sale date
- Postponements do not need to be posted in a newspaper
Facing Foreclosure?
If you have become aware of pending foreclosure actions, speak to an experienced bankruptcy attorney. Chapter 13 bankruptcy may be able to save your home, and all foreclosure actions must stop during bankruptcy proceedings. A knowledgeable attorney can protect your rights against creditors and mortgage lenders.
