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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Related Topics & Key Terms
Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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