Which type of foreclosure process does Tennessee primarily use when a deed of trust contains a power of sale clause?
Correct Answer
B) Non-judicial foreclosure through power of sale
Tennessee primarily uses non-judicial (power of sale) foreclosure under Tenn. Code Ann. § 35-5-101 et seq. When a deed of trust contains a power of sale clause, the trustee may foreclose without court involvement by following the statutory notice and publication requirements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
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