United States of America level Tennessee level Aspects of mortgage laws and regulations in Tennessee
Mortgage Law

The Laws of Tennessee mortgage is mainly governed by state statutory and common law. Mortgagees are regulated by federal or state law or agencies.

  • In Tennessee the lender must file a complaint against the borrower and obtain a decree of sale from a court having jurisdiction in the county where the property is located before foreclosure proceedings can begin.

  • Generally, if the court finds the borrower in default, they will give them a set period of time to pay the delinquent amount, plus costs.

  • If the borrower does not pay within the set period of time, the court will then order the property to be sold.

  • Under anti-deficiency laws, if the mortgage is a purchase money mortgage for the purchase of a dwelling occupied by the purchaser, the purchaser will not be held responsible for any deficiency and the lender can only recover the property and the proceeds of a subsequent sale.

  • The purchaser does not pay any deficit between the sale proceeds and the outstanding loan balance.


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