Charles F. Gaulden, and Wife, Ruth S. Gaulden v. Robert L. Scruggs, and Wife, Joyce W. Scruggs

OPINION

CANTRELL, Judge.

The question in this case is whether a purchaser of mortgaged property, who pays off the mortgage, takes an assignment of the note and deed of trust, and subsequently releases the deed of trust, can then sue the original mortgagor on the note. The Chancery Court of Davidson County dismissed the action. We affirm.

I

In 1988 the defendants, Mr. and Mrs. Scruggs, purchased three parcels of property, one parcel from the plaintiffs, Mr. and Mrs. Gaulden. The purchase price was $500,000 and the sellers agreed to help with the financing by taking a down payment of $125,000 and a…