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FinancingDeed_of_trust_mechanicsMEDIUM

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.

Answer Options
A
No, because Tennessee does not provide a statutory right of redemption after a non-judicial foreclosure sale
B
Yes, because federal law requires all states to allow a 6-month redemption period after foreclosure
C
Yes, because Tennessee provides a 12-month statutory redemption period after any foreclosure sale
D
No, but Sandra can petition the chancery court to set aside the sale within 30 days

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Related Topics & Key Terms

Key Terms:

no_statutory_redemptionnon_judicial_foreclosuretennessee_foreclosurepost_sale_rights
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