I just had a test on mortgages, so I can volunteer a little info on the subject. Actually in TN, mortgages are really deeds of trust. It is a three party transaction, as opposed to a two party transaction as in a mortgage. With a deed of trust, a mortgagor executes a deed of trust, and it gives legal title to a trustee. A granting clause in the deed of trust gives the trustee the power of sale. This means that a property can be foreclosed non judicially, which saves time and money.
TN is also a title theory state, which means that the mortgagee holds title until the property is paid off. Unlike the lien theory states, where the mortgagee just basically has a lien on the property.
TN also enforces due on sale clauses as written. Bored yet? I could go on, but you may not be listening.
I am just floating on air because I think I did well on the test. Maybe even an A! I hope so, but you never know with these dang law tests. Here's to positive thinking!
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