Court reviews a case involving the default on an assumed mortgage

PAUL W. CHAMBERS v. FIRST VOLUNTEER BANK OF TENNESSEE (Tenn. Ct. App. July 29, 2011)

This case arises from a dispute over the repayment of a loan. Penny Chambers obtained a loan through a bank in order to buy a house. Penny Chambers defaulted on the loan. Paul W. Chambers ("Chambers"), Penny Chambers's husband, later assumed the mortgage.

Chambers allegedly defaulted and First Volunteer Bank of Tennessee ("the Bank") stated that it would foreclose if he did not cure the default. Chambers sued the Bank in the Chancery Court for Polk County ("the Trial Court").

The Trial Court granted the Bank's motion to dismiss. Chambers appeals. We find that the Trial Court did not err in granting the Bank's motion to dismiss. We further find that the Trial Court did not err in denying Chambers's motion to alter or amend and motion for default. The judgment of the Trial Court is affirmed.

Opinion available at:
http://www.tba2.org/tba_files/TCA/2011/chambersp072911.pdf

Court Reviews Whether Defendant Undertook a Reasonable Effort to Obtain a Loan

ELIZABETH C. WRIGHT, v. FREDERICO A. DIXON, III (Tenn. Ct. App. May 2, 2011)

In this action to enforce a contract for the sale of real estate against defendant buyer, the Trial Court held that defendant failed to make reasonable efforts to obtain a loan in accordance with the requirement to obtain a mortgage for 100% financing, and awarded damages to plaintiff for breach of the contract since the plaintiff had sold the property before trial.

On appeal, we hold that the evidence preponderates against the Trial Judge's finding that the defendant failed to put forth reasonable efforts to obtain a loan which was a condition in the contract for purchase of the property, and remand. 


Opinion available at:

http://www.tba2.org/tba_files/TCA/2011/wrighte_050211.pdf