- Tennessee has legislation pending that regulates foreclosure consultants (See http://www.legislature.state.tn.us/ HB3133/SB3521:
- The Bill proposes:
- To require full disclosure of the services being provided; Notice that the foreclosure consultant cannot ask the homeowner to sign any lien, mortgage, or deed as part of signing the contract unless the terms of the transfer are specified in the contract and the homeowner is given a separate explanation of the precise nature of the transaction; notice that the foreclosure consultant cannot guarantee that the homeowner will be able to refinance the home or keep the home; and notice that the homeowner may rescind any transfer of a deed or title to the property that is involved any time not later than three days after the date the homeowner signs the deed or other document of sale or transfer.
- To require the written contract must be accompanied by a notice of rescission that allows the homeowner to rescind the contract at any time by mailing asigned copy to the foreclosure consultant
- To prohibit upfront fees; charging or receiving any interest or other compensation for any loan that exceeds 8 percent per year; take any security to secure compensation; receive consideration from an interested third party in unless the consideration is first fully disclosed in writing to the homeowner; acquiring any interest in a residence in foreclosure from a homeowner with whom the consultant has contracted; take any power of attorney from a homeowner
- This bill would not apply to lawyers acting within the scope of their employment.
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