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

    • "Heather is a great lawyer; however, one of her best attributes is that she also thinks like a business person. She understands our needs and gives us practical, real-world advice -- not something you get from many lawyers."

      -Jeffrey M. Pomeroy, Bayer Properties

    • "I would give them strong marks for their responsiveness and proactive-ness. Responsiveness is an absolute necessity and proactive work is also critically important. I've found Burr to be masters on these aspects. They respond quickly, effectively and efficiently in guiding a deal to closing. Burr & Forman has always been able to deliver expertise from within its proactive group or from another partner in a different section of the firm."

      -Chambers 2012

    • “He is terrific, very responsive and very thorough. It was his very good work that got us through.”

      -Chambers 2012

    • “As a client of Burr & Forman, I feel that my organization has excellent representation.  I have consulted with Amy Jordan and Bryance Metheny on numerous issues and have always found them both to be very responsive and to clarify legal matters or concerns with a sense of urgency. Specifically, Amy has handled our EEOC claims with the utmost attention to detail and has been the reason that we were successful in defending our EEOC claims with the level of success that we have had thus far.

      When we were being inundated with unemployment decisions favoring former employees, Bryance and Amy met with our Human Resources team to instruct us on the specifics of the section of law and we have had great success in turning our experience rating and saving our company a great deal in unemployment costs.  My organization relies heavily on the attorneys at Burr & Forman to provide legal advice as it relates to our strategic initiatives and to decrease our liability as an employer.”

      -Catherine Houston, Director of Human Resources, CLP Corporation

    • “A great firm.”

      -Chambers 2012