A Tennessee investor purchased a property at a non-judicial foreclosure sale. Two weeks after the sale, the original borrower contacts the investor and offers to pay the full original loan balance plus all costs, claiming a right to redeem the property. The investor consults a Tennessee attorney. What is the attorney's most accurate advice?
Correct Answer
B) The borrower has no statutory right of redemption after the completed non-judicial foreclosure sale in Tennessee
Tennessee does not provide a statutory right of redemption after a completed non-judicial (power of sale) foreclosure. Under Tenn. Code Ann. § 35-5-101 et seq., once the trustee's sale is conducted, the borrower has no statutory right to reclaim the property by tendering payment. The investor who purchased at the foreclosure sale holds clear title. This is one of Tennessee's most distinctive and heavily tested foreclosure rules — the absence of post-sale statutory redemption rights.
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