Tennessee Code Title 47. Commercial Instruments and Transactions § 47-30-108
Current as of January 01, 2020 | Updated by FindLaw Staff
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(a) When a reverse mortgage loan, other than a Fannie Mae Reverse Mortgage Loan, becomes due, if the borrower mortgaged one hundred percent (100%) of the full value of the house, then the amount owed by the borrower shall not be greater than:
(1) The fair market value of the house, minus sale costs; or
(2) The outstanding balance of the loan,
whichever amount is less.
(b) If the borrower mortgaged less than one hundred percent (100%) of the full value of the house, the amount owed by the borrower shall not be greater than:
(1) The outstanding balance of the loan; or
(2) The percentage of the fair market value, minus sale costs, as provided in the contract;
whichever amount is less.
(c) The lender shall enforce the debt only through the sale of the property and shall not obtain a deficiency judgment against the borrower.
Cite this article: FindLaw.com - Tennessee Code Title 47. Commercial Instruments and Transactions § 47-30-108 - last updated January 01, 2020 | https://codes.findlaw.com/tn/title-47-commercial-instruments-and-transactions/tn-code-sect-47-30-108/
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