Ray C. Hall v. TN. Workers Credit Union

Husband and Wife obtained a loan from a credit union and pledged their home as security for the note under a Deed of Trust. The Deed of Trust required Husband and Wife to maintain property taxes and insurance on the property. The credit union foreclosed on the property after Husband and Wife continuously failed to maintain the taxes and insurance. Husband and Wife filed suit against the credit union, arguing that the agreement between the parties did not provide the remedy of foreclosure for mere nonpayment of taxes and insurance. The trial court granted summary judgment for the credit union. Because we find that the agreement between the parties provides the remedy of foreclosure for breach of any promise made under the agreement, including the promise to pay property taxes and insurance, we find that the trial court was correct in granting summary judgment for the credit union and affirm that decision.