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

    • “David Houston is very thorough and responsive. He has developed a good understanding of my company’s needs and expectations, and works to anticipate those needs in advance. David is very knowledgeable about a number of topics.”

      -Chambers 2012

    • “It is my pleasure to recommend Howard and the healthcare team at Burr & Forman.  From issues related to medical staff bylaws, through numerous regulatory compliance and certificate-of-need applications, to the successful resolution of the largest Medicare recoupment effort against a private medical practice; Howard has always been a knowledgeable counselor, keen advisor and staunch advocate for the hospitals and medical practices I have managed. 

      Howard’s record of accomplishment is broad and impressive.  He is quick to respond when called.  His advocacy style is reassuring as he blends superior organizational skills, subject matter expertise and a willingness to listen and grasp the full understanding of his client’s needs and objectives.  

      This recommendation is made without reservation because for nineteen years, when my own reputation was at stake, I have introduced Howard to the organizations I manage.  In every case, the organization has benefitted greatly as he has managed to achieve the best outcomes possible.”

      -G. Thomas Brown, CEO, Eye Specialty Group and Ridge Lake Ambulatory Surgery Center

    • “Outstanding…"

      -Chambers 2012

    • “He is quick to respond and practical, and the advice he gives is always to the point."

      -Chambers 2012

    • “Gail is a trusted advisor who provides great insight to solving problems and getting deals to the finish line.  She is always quick to respond to our needs and I believe there is great value in the counsel she provides.”

      -Chris Brown, Vulcan Real Estate Partners, LLC