House Bill 5277 was recently introduced by Rep. Mike Callton, R-Nashville, chairman of the House Financial Services Committee in an effort to address a few lingering issues following the sunset of the state’s 90-day pre-foreclosure workout law and the creation of a lender’s right of inspection prior to the redemption period. After introduction, HB 5277 was referred to the House Financial Services Committee. The need for commonsense parameters had been an ongoing discussion topic, along with as-yet-unaddressed issues with owners that abandon properties.
The bill received testimony last week on Feb. 12 where consumer interests voiced a desire to provide reasonable notice of inspections and/or place a reasonable cap on the number of regular inspections, with exception for emergency situations where damage or imminent damage is reasonably suspected. Other suggestions included a simple notice to the homeowner to communicate that a sale has occurred, and would assist both sides in a foreclosure situation in facilitating necessary communications. From the industry’s view, the homeowners’ right to cure damage prior to the summary possession action needs to be reworked, and stronger liability provisions against those borrowers who abandon a property without notice to the purchaser would be very beneficial. Testimony has been taken in the House Financial Services Committee and these bills are awaiting a vote in committee.
The bill has received testimony in committee and a vote is expected in the coming weeks. MCUL & Affiliates has been and will remain an active participant in discussions pertaining to this legislation as it moves through the legislative process. If you have any questions regarding HB 5277, contact Kieran Marion, vice president of governmental affairs, at Kieran.Marion@mcul.org or State Legislative Coordinator Ashley Ligon at Ashley.Ligon@mcul.org.