Tennessee House Bill HB2136

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/24
• Refer: 2/28/24

Caption

AN ACT to amend Tennessee Code Annotated, Title 35, relative to foreclosure notices.

Impact

If enacted, HB2136 would have a significant impact on the foreclosure process within Tennessee. The requirement for a 30-day notice period is intended to ensure that individuals facing foreclosure have adequate time to respond to the situation. By extending the notice period, the bill aims to enhance consumer protections, giving affected homeowners a better opportunity to prepare for the potential sale of their property. This measure is particularly relevant in times of economic instability when homeowners may struggle to meet their mortgage obligations. Moreover, the bill reflects a growing concern for fairness within the foreclosure process.

Summary

House Bill 2136, introduced by Representative Eldridge, aims to amend the Tennessee Code Annotated related to foreclosure notices. The primary focus of the bill is to adjust the time frame required for the first publication of foreclosure notices. The proposed amendment stipulates that such notices must be published at least thirty (30) days prior to the scheduled sale. This change seeks to provide homeowners and the public with more advance notice before foreclosures are finalized, potentially allowing for more time to address financial issues or seek assistance.

Contention

While the intent behind HB2136 may be viewed positively by consumer advocates, there could be contention surrounding the implications of extending the notice period on foreclosure proceedings. Opponents may argue that longer notice periods could delay the process for lenders, potentially affecting their ability to recover losses incurred through defaulted loans. Additionally, some stakeholders in the real estate market might express concerns about the balance between protecting homeowners and maintaining efficient transaction processes, suggesting that any changes in foreclosure laws should consider the interests of all parties involved.

Last_action

The bill is set to take effect on July 1, 2024, contingent upon its passage through the General Assembly.