Tennessee Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust

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US-01525BG
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Description

A deficiency judgment is typically in an amount equal to the difference between the funds received from a court sale of property and the balance remaining on a debt. Deficiency judgments are commonly issued when a property owner fails to pay amounts owed on a mortgage and the property securing the mortgage is sold to satisfy the debt, but the proceeds from the sale are less than the amount owed.


Deficiency judgments are not allowed in all states. In order to get a deficiency judgment in most states, the party owed money must file a suit for judicial foreclosure instead of just foreclosing on real property. However, some states allow a lawsuit for a deficiency after foreclosure on the mortgage or deed of trust. Local laws should be consulted for specific requirements in your area.

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  • Preview Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust
  • Preview Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust
  • Preview Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust
  • Preview Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust
  • Preview Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust

How to fill out Complaint Or Petition To Recover Deficiency After Sale Under Trust Deed Or Deed Of Trust?

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FAQ

A "deficiency judgment" is a money judgment for the difference between the foreclosure sale price and the total mortgage debt. The deficiency judgment allows the lender to collect the debt through regular collection methods, like garnishing wages or levying a bank account.

A defeasance clause is a provision in some mortgage contracts indicating that the borrower will receive the title to the property once all of the mortgage payments have been made.

The difference between the sale price and the total debt is called a deficiency. For example, if you owe $20,000 on your car loan and the lender sells or auctions your auto for $15,000, the deficiency amount that you are still required to pay is $5,000.

In a judicial foreclosure, the lender can get a deficiency judgment to collect any money they're owed after the sale. In a judicial foreclosure, after the judge orders the sale of a home, it's usually auctioned off to the highest bidder.

In return for the lender having the power to sell the property, the Power of Sale clause protects the borrower by stating that when the lender sells the property, the lender may not hold the borrower liable for any cost not covered by the sale unless the lender is able to obtain a deficiency judgment in their favor, ...

A Tennessee deed of trust is used to secure the payment of a real property loan by conveying the borrower's property title to a third-party, referred to as the "trustee." The title is reconveyed to the borrower after the loan is returned to the lender, including any accrued interest.

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Tennessee Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust