AN ACT to amend Tennessee Code Annotated, Title 35, relative to foreclosure notices.
Summary
SB0727 revises Tennessee’s foreclosure notice procedures for sales of land under a deed of trust, mortgage, lien, or judicial process. The bill requires that foreclosure sales be advertised at least twice in a newspaper in the county where the sale will occur and also posted online for at least 20 continuous days by a third-party internet posting company, with the online posting publicly viewable. It also requires the trustee or selling party to mail notice of the foreclosure to the debtor and any co-debtor by certified or registered mail by the first publication date, using specified mailing-address rules.
The bill further allows foreclosure sales to be postponed or adjourned without republishing in the newspaper, so long as the sale occurs within one year of the original date and the postponement is announced both online and at the sale location; longer postponements require additional mailed notice. It also creates administrative requirements for third-party internet posting companies to register their website domain with the Secretary of State’s publications division, and it authorizes liability for damages if those companies fail to comply. The bill updates related statutes governing when newspaper publication is unavailable or too costly and adds a requirement that foreclosure notices identify the website used for the online posting.
Impact
The act amends Tennessee Code Annotated Title 35, especially sections 35-5-101, 35-5-103, 35-5-104, and 35-5-105, by adding an online-publication component to foreclosure advertising and by standardizing mailed notice requirements to debtors and co-debtors. It shifts foreclosure notice practice away from reliance solely on newspaper publication and creates a state-maintained list of approved third-party internet posting companies through the Secretary of State. The law takes effect July 1, 2025, and affects trustees, lenders, debtors, co-debtors, newspapers, internet posting vendors, and foreclosure-sale administrators.
Sentiment
The bill appears to have received cautious but ultimately favorable consideration, advancing through the Senate Commerce and Labor Committee and the Senate Judiciary Committee with amendments. The committee votes were close, indicating some support but also meaningful reservations. The final enactment suggests the measure had enough consensus to pass, likely because it modernizes notice procedures while preserving traditional newspaper publication and adding direct mailed notice protections.
Contention
The main points of contention likely centered on the shift from newspaper-only notice to a hybrid system that includes online posting, as well as the administrative and liability burdens placed on third-party internet posting companies. Some members may have questioned whether online posting is sufficiently accessible or reliable compared with newspaper publication, while others may have been concerned about costs, compliance, and the potential for disputes over notice adequacy. The close committee votes suggest disagreement over balancing modernization of foreclosure notice practices with protections for property owners and procedural certainty for lenders and trustees.