The House Financial Services Committee
reported HB
5277 to the floor on Wednesday. The bill would require those with a home in
foreclosure to notify the lender at least 10 days in advance if they plan on
vacating the home during the redemption period. Supporters said the goal of the
bill is to give lenders the opportunity to secure the foreclosed property from
vandals and metal scrappers.
State Representative Mike Callton
(R-Nashville), Chair of the Committee and sponsor of the bill, noted that in
the reported version homeowners may notify the lender by certified mail or
email. This way a trail is created to prove the notification happened. If a
home is damaged or put in a situation that could mean imminent damage, the
lender could demand an emergency inspection. The bill also allows the lender
regular monthly inspections during the redemption period to ensure the
homeowners are not damaging the property.
The committee also began to discuss a package
of legislation that would require financial institutions to notify those
seeking to open a joint account that anyone named on the account, and possibly
their creditors, could have access to the account’s funds.
Rep. Winnie Brinks (D-Grand Rapids), who
sponsors the bill, said a person in her district had set up an account with her
granddaughter and son with the intention of creating a college fund for her
granddaughter. The account was instead attacked on behalf of one of the son’s
other children for unpaid child support. She argued that a notice would have
alerted her constituent to the possibility. Senior advocacy groups also
supported the legislation, saying that it would make seniors aware of the
implications of adding family members to accounts.