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Tennessee Foreclosure Law
Non-Judicial Foreclosures only.
Pre-foreclosure Period
In Tennessee, court foreclosures are very rare. Out-of-court
proceedings are customary and occur when a clause exists in a
mortgage or deed of trust that authorizes the lender to sell the
property if the borrower defaults. Once the borrower defaults on
the payment, the trustee assigned in the deed of trust has the
authority to begin the foreclosure process and advertise the
property for sale. The borrower may stop the foreclosure process
prior to the sale by paying the total amount owed plus any
applicable fees. The typical foreclosure timeline is
approximately two months.
Notice of Sale / Auction
If the deed of trust or mortgage contains a clause that
specifies the time, place, and terms of sale, then the specified
procedure must be followed. The notice of foreclosure sale
includes the names of the affected parties, a description of the
property, and the date, time, and location of the sale. It also
includes all liens on the property. The notice is published
three times in a newspaper, with the first publication appearing
at least 20 days prior to the foreclosure sale. State statute
does not require any further notification; however, it's not
uncommon for the trustee to mail a notification of the sale to
the borrower. The sale is held by a trustee between 10:00am and
4:00pm. After the sale, the trustee transfers the ownership to
the highest bidder. Deeds of trust in Tennessee commonly do not
allow the borrower to redeem the property after the sale. If
this right is not waived, the borrower may redeem the property
by paying the total debt plus costs within two years.
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