Tennessee Foreclosure Laws

Foreclosure Process Overview

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

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.