What is the Homeowner’s Protection Act?
The Tennessee Homeowner’s Protection Act is a state law that was enacted in 2006. The law provides homeowners with certain protections when entering into a mortgage loan. The law requires lenders to provide homeowners with annual disclosures, provides limits on late fees and penalties, and includes certain requirements with respect to foreclosure. The Act requires lenders to provide homeowners with disclosures of their rights when applying for a loan and upon entering into a loan agreement. This includes a list of state and federal agencies that homeowners can contact for assistance when dealing with a lender. The Act also limits the amount of fees and penalties lenders may charge for late payments. Specifically, any late fee or penalty charged may not exceed 4% of the payment that was overdue. Moreover, the Act requires lenders to provide homeowners with a minimum of 90 days’ notice before initiating foreclosure proceedings. Additionally, the Act specifies certain requirements with respect to public foreclosure notices, and provides homeowners with the right to redeem the property by paying off the debt within one year of the foreclosure notice. Overall, the Tennessee Homeowner’s Protection Act is an important law designed to help provide Tennesseans with certain protections when entering into a mortgage loan. The law helps ensure that lenders are following certain requirements with respect to disclosures, late payments, and foreclosure.
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