Timeline:
60 Days
Redemption:
Yes, only if Non-Judicial Foreclosure
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
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Tennessee
foreclosure law allows lenders to pursue foreclosure by following
either Judicial or Non-Judicial Foreclosure procedures. If the
original loan documents do not contain a “power of sale” clause,
then the lender must sue the borrower to obtain a decree of
foreclosure under the Judicial Foreclosure process. The court
gives the borrower a set period of time to cure the default.
If the borrower can not cure the default, then the court will
order the property to be sold.
If a
“power of sale” clause is present in the loan documents, then
the lender can follow the Non-Judicial Foreclosure process.
If the clause specifies the time, place, and terms of the sale,
then those details must be followed. |
In Tennessee
, the notice of sale must be published for three (3) consecutive
weeks in a newspaper of general circulation in the county in
which the property is located. The first publication can not
be less than twenty (20) days before the sale date. If there
is no newspaper to publish the notice in, then the notice may
be posted in five public places in the county. One of these
places must be on the door of the courthouse, and one other
one must be in the neighborhood in which the property is located.
No less than twenty (20) days before the sale, the borrower
must be served with the notice of sale.
On the
scheduled date of the sale, the sheriff will conduct the sale
between the hours of 10:00 AM and 4:00 PM . A minimum price
for the property may be set by the sheriff, but this price must
be at least half (50%) of the fair market value of the property.
The high bidder at the auction receives a certificate of sale,
with a deed to be received at the end of the redemption period.
Borrowers
in Tennessee have a two year right of redemption after the sale,
unless this right is waived in the original deed of trust. The
lender has the right to sue the borrower for a deficiency judgment
if the sale price does not cover the balance due on the loan
plus costs.