Real Property - As introduced, updates requirements regarding public notice for a foreclosure sale of real property, including a requirement that public notice be posted on the secretary of state's website. - Amends TCA Title 35.
  • Bill History
  • Amendments
  • Video
  • Summary
  • Fiscal Note
  • Votes
  • Actions For HB2430Date
    Sponsor(s) Added.02/28/2024
    Assigned to s/c Civil Justice Subcommittee02/06/2024
    P2C, ref. to Civil Justice Committee02/01/2024
    Intro., P1C.01/31/2024
    Filed for introduction01/30/2024
    Actions For SB2899Date
    Assigned to General Subcommittee of Senate Commerce & Labor Committee03/08/2024
    Refer to Senate State & Local Government Committee02/13/2024
    Recalled from Senate Commerce & Labor Committee02/13/2024
    Passed on Second Consideration, refer to Senate Commerce and Labor Committee02/05/2024
    Introduced, Passed on First Consideration02/01/2024
    Filed for introduction02/01/2024
  • No amendments for HB2430.
    No amendments for SB2899.

  • Videos containing keyword: HB2430

  • Fiscal Summary

    Not Available


    Bill Summary

    JUDICIAL OR TRUST SALES NOTICE; REQUIREMENTS

    Present law requires in any sale of land to foreclose a deed of trust, mortgage or other lien securing the payment of money or other thing of value or under judicial orders or process, advertisement of the sale to be made at least three different times in some newspaper published in the county where the sale is to be made. The first publication must be at least 20 days previous to the sale. However, this does not apply where the amount of indebtedness for the payment of which the property being sold does not amount to more than $200, in which event the owner of the property may order that advertisement be made by written notices posted in at least five of the most public places in the county, instead of by notices published in a newspaper. Additionally, such present law does not apply to any notice published in accordance with any contract entered into and expressed in a mortgage, deed of trust or other legal instruments.

    Present law requires the trustee or other party that sells the property to send to the debtor and any co-debtor a copy of the notice in any sale of land to foreclose a deed of trust, mortgage, or other lien securing the payment of money or other thing of value or under judicial orders of process. The notice must be sent on or before the first date of publication by registered or certified mail, return receipt requested. The notice must be sent to the following:

    (1) If to the debtor, addressed to the debtor at (i) the mailing address of the property, if any; and (ii) the last known mailing address of the debtor or any other mailing address of the debtor specifically designated for purposes of receiving notices provided at least 30 days prior to the first publication date in written correspondence or written notice in accordance with the loan agreement from the debtor to the creditor, but only if the last known mailing address of the debtor or other mailing address designated by the debtor is different from the mailing address of the property; and

    (2) If to a co-debtor, addressed to the co-debtor at the last known mailing address of the co-debtor or any other mailing address of the co-debtor specifically designated for purposes of receiving notices provided at least 30 days prior to the first publication date in written correspondence or written notice in accordance with the loan agreement from the co-debtor to the creditor, but only if the last known mailing address of the co-debtor or other mailing address designated by the co-debtor is both different from the mailing address of the property and different from the mailing address of the debtor determined in (1)(ii) above.

    Present law authorizes a sale to be adjourned and rescheduled one or more times without additional newspaper publication, upon compliance with the following:

    (1) The sale must be held within one year of the originally scheduled date;

    (2) Each postponement or adjournment must be to a specified date and time, and must be announced at the date, time, and location of each scheduled sale date;

    (3) If the postponement or adjournment is for more than 30 days, notice of the new date, time, and location must be mailed no less 10 calendar days prior to the sale date via regular mail to the debtor and co-debtor; and

    (4) Notice of the right to postpone or adjourn without additional newspaper publication must not be required to be published in any newspaper publication.

    This bill deletes the present law mentioned above and replaces it with the provisions below.

    In a sale of land to foreclose a deed of trust, mortgage, or other lien securing the payment of money or other thing of value or under judicial orders or process, this bill requires public notice of the sale to be made by the foreclosing party at least 20 days in advance of the sale.

    This bill provides that the requirement to provide public notice is satisfied if the foreclosing party causes a copy of the public notice to be published at least one time in a newspaper in the county where the sale is to be made and posted on the secretary of state's website for a minimum of 20 continuous days. The date that the public notice is published in the newspaper is deemed the public notice date for calculating days in accordance with this bill. The fee for posting public notice on the secretary of state's website is $100, per posting. However, this bill applies only where the amount of indebtedness for the payment of which the property being sold is greater than $200.

    This bill requires the trustee or other party that sells the property to send to the debtor and any co-debtor a copy of the public notice in a sale of land to foreclose a deed of trust, mortgage, or other lien securing the payment of money or other thing of value or under judicial orders of process. The notice must be sent on or before the public notice date described in this bill by registered or certified mail, return receipt requested. The notice must be sent as follows:

    (1) If to the debtor, addressed to the debtor at (i) the mailing address of the property, if any; and (ii) the last known mailing address of the debtor or any other mailing address of the debtor specifically designated for purposes of receiving notices under the deed of trust, mortgage, or other lien instrument that was provided at least 30 days prior to the public notice date in written correspondence or written notice in accordance with the loan agreement from the debtor to the creditor, but only if the last known mailing address of the debtor or other mailing address designated by the debtor is different from the mailing address of the property; and

    (2) If to a co-debtor, addressed to the co-debtor at the last known mailing address of the co-debtor or any other mailing address of the co-debtor specifically designated for purposes of receiving notices that were provided at least 30 days prior to the public notice date in written correspondence or written notice in accordance with the loan agreement from the co-debtor to the creditor, but only if the last known mailing address of the co-debtor or other mailing address designated by the co-debtor is both different from the mailing address of the property and different from the mailing address of the debtor described in (1)(ii) above.

    Unless postponement or adjournment is contractually prohibited, this bill authorizes a sale to be adjourned and rescheduled one or more times upon compliance with the following:

    (1) The sale must be held within one year of the date scheduled in the original public notice;

    (2) Each postponement or adjournment must be set to a specified date and time and must be announced by posting the date, time, and location of each scheduled sale on the secretary of state's website; so long as the foreclosing party posts notice on the website regarding the continuance at least five days prior to the immediately preceding posted sale date. If the continuance is not posted at least five days prior to the then-scheduled sale date, then in addition to posting the date, time, and location of each scheduled sale on the secretary of state's website, the postponement or adjournment must be announced on the date and at the location and time of the then-scheduled sale;

    (3) For each postponement or adjournment, notice of the new date, time, and location must be mailed to the debtor and co-debtor via regular mail at least 10 calendar days prior to the new sale date unless the postponement or adjournment occurs within 10 days of the new sale date, in which case notice must be mailed as soon as practical; and

    (4) Notice of the right to postpone or adjourn without additional newspaper publication is not required to be published in any newspaper publication or on the secretary of state's website.

    NOTICE POSTED ON SECRETARY OF STATE'S WEBSITE

    Present law provides that if a newspaper is not published in the county in which the land is to be sold, then the advertisement in a newspaper is dispensed with, unless ordered by court. This bill adds to the present law that regardless, public notice must be posted on the secretary of state's website.

    Present law requires, whenever the advertisement cannot be made in a newspaper, the officer to make publication of the judicial or trust sale for 30 days by written notices posted in at least five of the most public places in the county, one of which must be the courthouse door, and another in the neighborhood of the defendant; if of realty, in the civil district where the land lies. This bill deletes this provision and, instead, provides that whenever public notice is required to be provided in a newspaper pursuant to the law relevant to judicial trust sales, but the foreclosing party is unable to make public notice in a newspaper, the public notice requirement is satisfied by posting notice on the secretary of state's website.

    CONTENTS OF NOTICE

    Present law requires the advertisement or notice for a judicial or trust sale to give the names of the plaintiff and defendant, or parties interested. This bill changes the present law and, instead, requires the public notice to give the names of the foreclosing party, the property owner, and any interested parties.

    As used in the above present law, "parties interested" includes, without limitation, the record holders of any mortgage, deed of trust, or other lien that will be extinguished or adversely affected by the sale and which mortgage, deed of trust, or lien, or notice or evidence thereof, was recorded more than 10 days prior to the first advertisement or notice in the register's office of the county in which the real property is located. This bill adds that "parties interested" also includes the owner of the property.

    NOTICE IN WRITING IF PRINTER REFUSES

    Present law provides that if the printer will not make the publication for its regular classified advertising rate, the officer or person conducting the sale must make publication by written notices as provided in the law relevant to posting written notices and other existing law. This bill changes the present law by, instead, providing that if the printer will not publish public notice for a rate that is not more than its regular classified advertising rate, then publishing public notice in a newspaper is not required. Regardless, public notice must be posted on the secretary of state's website.

    SALE WITHOUT ADVERTISING IS NOT VOID

    Present law provides that if the officer, or other person making the judicial or trust sale, proceeds to sell without adhering to the provisions of law relevant to judicial or trust sales, then the sale must not, on that account, be either void or voidable. This bill adds to the present law by also providing that such officer or other person proceeds to sell without pursuing the legal instruments governing the foreclosure, then the sale must not, on that account, be either void or voidable.

    APPLICABILITY

    This bill takes effect January 1, 2025.

  • No fiscal note for this bill.
  • House Floor and Committee Votes

    Votes for Bill HB2430 by the House are not available.

    Senate Floor and Committee Votes

    Votes for Bill SB2899 by the Senate are not available.