Sandra's home in Knoxville was sold at a non-judicial foreclosure sale last month after she defaulted on her deed-of-trust loan. Sandra has now obtained the funds to pay off the full outstanding balance. Under Tennessee law, can Sandra reclaim her property by paying the debt after the sale?
Correct Answer
A) No, because Tennessee does not provide a statutory right of redemption after a non-judicial foreclosure sale
Tennessee does not provide a statutory right of redemption after a non-judicial (power of sale) foreclosure. Under Tenn. Code Ann. § 35-5-101 et seq., once the trustee's sale is completed, the borrower has no statutory right to reclaim the property by paying the outstanding debt. This is a critical Tennessee-specific distinction: many other states provide redemption periods, but Tennessee does not for non-judicial foreclosures.
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Key Terms:
Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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