Burr Alert: Is “MATERIALLY LESS” The Same As “GROSSLY INADEQUATE”?

    December 27, 2012

    Tennessee was one of many states jumping on the debtor-protection bandwagon following disclosures of lender misconduct in the wake of the 2007 real estate market collapse.

    Background

    The legislative solution crafted into Tenn. Code Ann. 35-5-118 created a rebuttable presumption that the amount bid at a foreclosure sale equaled the fair market value of the property. Debtors could overcome this presumption by showing that the bid was "materially less" than fair market value. The statute became effective September 1, 2010. Prior to that time, the standard for setting aside foreclosures was whether the bid amount was "grossly inadequate."

    There has been much debate in legal circles as to whether the new statutory approach would pave the way for debtors to defeat or reduce deficiency judgments. In the only two cases decided since the act went into effect, both the Eastern and Middle Sections of the Court of Appeals have found in favor of the lenders.

    To read more about this topic, please see full article below

    Download PDF


    Legal Disclaimer:
    No representation is made that the quality of services to be performed is greater than the quality of legal services performed by other lawyers.
    send article

    TESTIMONIALS

    • “She’s got a good reputation.”

      -Chambers 2012

    • “They have a wonderful real estate practice. I think they are as good as anyone in the South. They are technically excellent at what they do. The deals get done with these guys. They have a well-rounded group. Anybody we have ever referred to them has been very happy and satisfied.”

      -Chambers 2012

    • "...He has written a lot about Alabama employment law. Probably the leader of the group at Burr & Forman.”

      -Chambers 2012

    • "Gail is extremely efficient and responsive which makes our closing process go smoothly and allows us to meet tight closing deadlines.  A reputation for having a seamless and timely closing process helps give us an edge over the competition to obtain the deal.  Gail is an excellent communicator and develops a high level of trust and respect with our team as well as with our clients."

      -Sarah S. Duggan, Seniors Housing and Healthcare Lending, Synovus Financial Corporation

    • “Very competent. She’s often regarded as the queen of the bankruptcy court in central Florida. She is very well respected and very well versed in the bankruptcy code. Her mind is more focused on the legal aspects of things and she has an ability to work on deals outside court.”

      -Chambers 2012