Stop Foreclosure in Tennessee

 


How to Stop Foreclosure in Tennessee

The state of Tennessee allows for both types of foreclosures mainly the judicial and non-judicial. The most common type of foreclosure in the state is non-judicial although one must still know the importance of how the judicial procedures work. The non-judicial method allows the lender to sell the property if the borrower is significantly behind on their mortgage payments. For the judicial foreclosure, however, the lender will need the permision of the court to sell the property so as to recover the balance from the loan. Fortunately, thwarting a foreclosure in Tennessee regardless of method is the same.

  • Step 1
    Apply for a rapid refinance from a local bank at Tennessee or from a credit union. To qualify for such, one must have a good credit and a stable source of income. This will help expedite the refinancing.
  • Step 2
    Find a bankruptcy attorney that has a good reputation in Tennessee. Ask help in filing a Chapter 13 bankruptcy which will let you keep the property as well as lower your monthly payments. Be warned though, that this should only be done as a last resort.
  • Step 3
    Sell your property off by means of a short sale so as to stop the foreclosure process. Selling the property to pay off an existing mortgage which usually mean the it will sell for less that what it is worth. Ask the lender to agree upon the lesser amount to pay.

Synopsis of TennesseeForeclosure Laws

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 60 days

Right of Redemption: Yes

Deficiency Judgments Allowed: Yes

In Tennessee, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial foreclosure process is one in which the lender must file a complaint against the borrower and obtain a decree of sale from a court having jurisdiction in the county where the property is located before foreclosure proceedings can begin. Generally, if the court finds the borrower in default, they will give them a set period of time to pay the delinquent amount, plus costs. If the borrower does not pay within the set period of time, the court will then order the property to be sold.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

  1. A notice of sale must be published at least three (3) different times in a newspaper published in the county where the sale is to be made, with the first publication appearing at least twenty (20) days prior to the sale.
  2. Unless otherwise ordered, if no newspaper is published in said county, the notice of sale must be posted at least thirty (30) days in advance of the sale in at least five (5) public places within the county. At least one of these notices must be placed at the courthouse door and another in the neighborhood of the property itself.
  3. A notice of sale must also be served upon the borrower at least twenty (20) days prior to the date of sale if the borrower is in possession of the property.
  4. The sale must be held between the hours of 10:00 am and 4:00 pm for cash to the highest bidder. The sheriff of each county in the state of Tennessee may set a minimum acceptable price for the property as long as the price is equal to or greater than fifty percent (50%) of the fair market value.
  5. The successful bidder at the foreclosure sale will receive a certificate of sale and may be entitled to receive a deed once the borrowers right of redemption has expired.

Deficiency judgments are allowed in Tennessee and the borrower has a period of two (2) years to redeem the property, unless their right of redemption was waived in the original deed of trust.

Where to go to for Foreclosure Help

Knoxville Field Office

US Department of Housing and Urban Development
John J. Duncan Federal Building
710 Locust Street, Third Floor
Knoxville, TN 37902-2526

Phone: (865) 545-4370
Fax: (865) 545-4569
TTY: (865) 545-4559

Jurisdiction: Anderson, Bledsoe, Blount, Bradley, Campbell, Carter, Claiborne, Cocke, Cumberland, Fentress, Grainger, Greene, Grundy, Hamblen, Hamilton, Hancock, Hawkins, Jefferson, Johnson, Knox, Loudon, McMinn, Marion, Meigs, Monroe, Morgan, Pickett, Polk, Roane, Scott, Sequatchie, Sevier, Sullivan, Unicoi, Union

Mary Wilson
Acting Field Office Director

Office Hours: 7:30 a.m. to 4:15 p.m.
Monday through Friday

Memphis Field Office

200 Jefferson Suite 300
Memphis, TN 38103

Phone: (901) 544-3367
Fax: (901) 544-3697
TTY: (800) 855-1155

Jurisdiction: Benton, Carroll, Chester, Crockett, Decatur, Dyer, Fayette, Gibson, Hardeman, Hardin, Haywood, Henderson, Henry, Lake, Lauderdale, Madison, McNairy, Obion, Shelby, Tipton, Weakley

John Gemmill
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Nashville Field Office

235 Cumberland Bend Suite 200
Nashville, TN 37228-1803

Phone: (615) 736-5600
Fax: (615) 736-7848
TTY: (866) 503-0264

Jurisdiction: Bedford, Cannon, Cheatham, Clay, Coffee, Davidson, De Kalb, Dickson, Franklin, Giles, Hickman, Houston, Humphreys, Jackson, Lawrence, Lewis, Lincoln, Macon, Marshall, Maury, Montgomery, Moore, Overton, Perry, Putnam, Robertson, Rutherford, Smith, Stewart, Sumner, Trousdale, Van Buren, Warren, Wayne, White, Williamson, Wilson

William (Bill) H. Dirl
Field Office Director

Office Hours: 7:45 a.m. to 4:15 p.m.
Monday through Friday

Stop Foreclosure Help

A C & C Brokerage
(615) 833-5678
101 Brentwood Sq
Nashville, TN

A I Mortgage Inc
(615) 843-5626
413 Welshwood Dr
Nashville, TN

Wells Fargo
(901) 491-0349
1669 Kirby Parkway
Memphis, TN

Accurate Mortgage
615) 690-6200
1321 Murfreesboro Pike
Nashville, TN

Expectancy Capital – Funding projects from 1Million-20Million
615-717-5970
1040 Charlie Daniels Parkway
Mount Juliet, TN

Wells Fargo Home Mortgage- Reverse
423-378-7271
338 East Center St
Kingsport, TN

1st Fidelity Mortgage
(615) 279-5381
740 Thompson Ln
Nashville, TN

Ace Mortgage Funding Incorporated
(800) 733-4967
11 Plus Park Blvd
Nashville, TN

U S Community Credit Union
(615) 256-8712
125 8th Ave S
Nashville, TN

STEEL RAINBOW Mortgage Professionals, Inc.
1-866-699-0974
steelrainbowmortgage.com
Jackson, TN