Tennessee Foreclosure Laws

With regards to judicial foreclosure, this method is used when no power of sale clause exists in the loan document and requires the lender to sue the borrower to obtain a decree of foreclosure. The court will give the borrower a set time in which to cure the default. If the borrower fails to do so, the court will order the sale of the property.

Foreclosures here take an average of two months to be completed and the borrower is allowed a right of redemption as long as the non-judicial method of foreclosure is used.

The notice of sale must be published in a newspaper in the county in which the property is located for a total of at least three times. The date of the first publication has to take place at least 20 days prior to the sale date. If no newspaper is available, the notice must be posted publicly in five places in the county, one of which must be on the door of the courthouse, and another in the neighborhood of the property. The notice must also be served upon the borrower at least 20 days prior to the sale date.

The sheriff of that county will conduct the sale between the hours of 10:00 AM and 4:00 PM on the specified date. The sheriff may also set a minimum price as long as the price set is equal or more than 50% of the property’s fair market value. The statutory redemption period is two years from the date of sale unless waived in the original deed of trust. Deficiency judgments are allowed.

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