47-18-5401 - Part definitions. - Tennessee Statutes

47-18-5401. Part definitions.

As used in this part, unless the context otherwise requires:

     (1)  “Foreclosure-related rescue services” means any service related to or promising assistance in connection with:

          (A)  Stopping, avoiding or delaying foreclosure proceedings concerning residential real property; or

          (B)  Curing or otherwise addressing a default or failure to timely pay with respect to a residential mortgage loan obligation;

     (2)  “Foreclosure-rescue consultant” means a person who directly or indirectly makes a solicitation, representation or offer to a homeowner to provide or perform, in return for payment of money or other valuable consideration, foreclosure-related rescue services; provided, that a foreclosure-rescue consultant shall not include:

          (A)  A person acting under the express authority or written approval of the United States department of housing and urban development or other department or agency of the United States or this state to provide foreclosure-related rescue services; provided, that the person does not solicit, charge, receive or attempt to collect or secure payment, directly or indirectly, for foreclosure-related rescue services except as expressly authorized by federal law, regulation or rule;

          (B)  A charitable, not-for-profit agency or organization, as determined by the United States internal revenue service under § 501(c)(3) of the Internal Revenue Code, codified in 26 U.S.C. § 501(c)(3), that offers counseling or advice to an owner of residential real property in foreclosure or loan default if the agency or organization does not contract for foreclosure-related rescue services with a for-profit lender or person facilitating or engaging in foreclosure-rescue transactions, and does not solicit, charge, receive or attempt to collect or secure payment, directly or indirectly, for foreclosure-related services;

          (C)  A person who holds or is owed an obligation secured by a lien on any residential real property in foreclosure if the person performs foreclosure-related rescue services in connection with this obligation or lien and the obligation or lien was not the result of or part of a proposed foreclosure reconveyance or foreclosure-rescue transaction;

          (D)  A state or national bank or its subsidiary, a state or federal savings institution or its subsidiary, a state or federal credit union, an industrial loan and thrift company or a licensed mortgage loan broker or originator; or

          (E)  An attorney licensed or otherwise authorized to practice law in this state who is providing legal services to a client;

     (3)  “Foreclosure-rescue transaction” means a transaction that is designed or intended by the parties to stop, avoid or delay foreclosure proceedings against a homeowner's residential real property;

     (4)  “Homeowner” means any record title owner of residential real property that is the subject of foreclosure proceedings; and

     (5)  “Residential real property” means improved real property used or occupied or intended to be used or occupied for residential purposes by the owner.

[Acts 2009, ch. 198, § 1.]