Tennessee Foreclosure Laws

Tennessee Foreclosure Laws

authorWritten by Manuel Martinez, RealtyTrac contributorPublished Jun 6, 2013

Last updated

Key Takeaways

  • Most Tennessee foreclosures are non-judicial and handled by a trustee outside court.
  • The typical foreclosure timeline is approximately two months.
  • Borrowers can stop foreclosure before the sale by paying the total owed plus fees.
  • If redemption is not waived, borrowers can redeem within two years.

Foreclosure Process Overview

Most Tennessee foreclosures occur outside of the court system. The typical foreclosure process takes less than two months in Tennessee.

Judicial Non Judicial Comment Process Period Publish Sale Redemption Period Sale/NTS
• Non-judicial only 40-45 days 20-25 days 730 days Trustee

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.

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.

Frequently Asked Questions

Is Tennessee a judicial foreclosure state?

No. Court foreclosures are very rare in Tennessee; most are handled out of court by a trustee under the deed of trust.

Is there a right of redemption in Tennessee?

Deeds of trust commonly waive it. If it is not waived, the borrower may redeem by paying the total debt plus costs within two years.

Sources & References

Outside sources cited in this article.

  1. Tennessee Code § 66-8-101: Right of redemption, FindLaw (Tennessee Code Annotated)
  2. How does foreclosure work?, Consumer Financial Protection Bureau
Manuel Martinez

About the author: Manuel Martinez

RealtyTrac contributor

Manuel Martinez is a contributor to RealtyTrac who writes about local housing markets, home buying and real estate investing. He has written for RealtyTrac since 2013, covering city and state market reports, home buying guides and tips, investment financing and strategies for buying and flipping homes.

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