Legal Question in Credit and Debt Law in Tennessee

Taking possession of secured property

I have a deed of trust on bldg, security interest in equipment to secure a $600,000 note. I am second but first deed of trust is just $200,000. Auction value of property is probably $500,000. Borrower is in default. Loan agreement states I can take possession. Can I simply take a deputy with me and change the locks? Do a need a judges order? When I take possession, do I have to sell the property at auction or can I just keep it? If I keep it, can I still get judgement for difference in value?


Asked on 12/08/06, 9:16 pm

1 Answer from Attorneys
LAURA TEK LAW OFFICE OF LAURA TEK

Re: Taking possession of secured property

Your rights in the event of default depends entirely on what your contract/agreement states. Your attorney should really review it with you and advise you of your options because if you do something wrong, the tenant could come back against you.

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Answered on 12/09/06, 3:49 pm


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