Patricia purchased a home in Memphis using a deed of trust. She has defaulted on her loan payments, and the lender wants to foreclose. Under Tennessee law, which foreclosure method is available WITHOUT requiring court involvement?
Correct Answer
D) Non-judicial foreclosure using the power of sale clause in the deed of trust
Tennessee allows non-judicial foreclosure (also called foreclosure by power of sale) under Tenn. Code Ann. § 35-5-101 et seq. Because the deed of trust contains a power-of-sale clause, the trustee can conduct a foreclosure sale without filing a lawsuit or obtaining a court order. This is the primary foreclosure method in Tennessee and is faster and less expensive than judicial foreclosure.
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