Marcus borrowed $180,000 to purchase a home in Nashville using a deed of trust. He later defaulted on the loan. The trustee published notice of the foreclosure sale in a local newspaper and the property was sold at auction. Two weeks after the sale, Marcus learned he could reclaim the property by paying the full debt. Under Tennessee law, which statement is correct?
Correct Answer
A) Marcus has no statutory right of redemption after a non-judicial foreclosure sale in Tennessee.
Tennessee does not provide a statutory right of redemption after a non-judicial (power of sale) foreclosure sale. Under Tenn. Code Ann. § 35-5-101 et seq., once the trustee completes the foreclosure sale, the borrower has no legal right to reclaim the property by paying the debt. This is a critical distinction from many other states that do provide post-sale redemption periods.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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