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.
