Amount Owed by Borrower When Loan Is Due — Enforcement of Debt

1. Law
2. Tennessee Code
3. Commercial Instruments and Transactions
4. Home Equity Conversion Mortgages
5. Amount Owed by Borrower When Loan Is Due — Enforcement of Debt

1. 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.

2. 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.

3. The lender shall enforce the debt only through the sale of the property and shall not obtain a deficiency judgment against the borrower.

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