Facing Foreclosure in Tennessee?

Why we created this website

Facing the possibility of foreclosure can be overwhelming. Many homeowners don't know where to start, who to talk to, or how much time they actually have.

There may be several possible paths depending on your circumstances — working with the mortgage servicer, seeking qualified housing counseling, exploring a loan workout, considering a sale, or pursuing another available option.

We created this website to give Tennessee homeowners a straightforward place to explain their situation and understand what options may be worth exploring. If selling the property is something you're considering, we can also help you understand what a potential sale might look like.

How does foreclosure work in Tennessee?

Most Tennessee home loans are secured by a deed of trust rather than a traditional mortgage. That document typically names a trustee and gives the trustee the power to sell the property if the borrower defaults. In those circumstances, foreclosure can proceed without a traditional court proceeding.

Notice requirements generally apply, including published notice of the sale, and the sale is normally conducted publicly. Beyond that, it's genuinely case-by-case. Your specific timeline can depend on the loan documents, notices, lender, property, and circumstances. If you have received a notice, review it carefully and consider speaking with an appropriate professional.

We'd rather tell you that than hand you a tidy timeline that might not match your loan. For a longer walkthrough, read our guide to what happens after you fall behind, and for how the process looks locally see Nashville and Memphis.

Received a foreclosure notice?

Don't ignore it. Work through this list instead:

• Read the notice carefully, start to finish.
• Identify the lender or servicer named on it.
• Determine the stated deadline or sale date.
• Ask for current payoff and reinstatement figures if they're available to you.
• Ask what loss-mitigation options may be available on your loan.
• If you're considering selling the property, contact us as early as possible so we can evaluate whether a sale may be practical.

Selling your Tennessee home before foreclosure

If you have equity in your home and you're considering selling, a sale before foreclosure may be one option worth evaluating. A sale can potentially allow you to sell the property, pay off the mortgage and other valid liens at closing, and preserve any remaining equity — but the numbers have to work.

If the property is worth less than what is owed, the situation can be different and may require lender approval or other professional guidance. The first step is simply understanding the numbers.

Find out what my home could be worth →

Do I have equity in my home?

One of the first questions to answer is whether your home is worth more than what you owe.

For example, if a home could sell for $300,000 and the total payoff amounts are approximately $220,000, there may be equity before selling expenses and other costs. If the amount owed is greater than the property's market value, the situation may require a different strategy.

That's why understanding the property's value and the approximate payoff is important. Our equity and net proceeds calculator walks that math without a pitch attached.

The sooner you understand your options, the better

Foreclosure situations can involve deadlines. Waiting until the last possible moment can reduce the number of options available to you.

If you've received a foreclosure notice or are significantly behind on payments, don't ignore it. Start by finding out what is happening, what deadlines apply to your situation, what you owe, and what options may be available. If you're considering selling, you can tell us about the property at any point in the process.

What is a short sale?

A short sale generally involves selling a property for less than the amount owed, with the lender or other lienholder approving the transaction. It's different from a normal sale because the lender's approval may be required — and that approval is not something anyone can promise you.

If you believe you may owe more than the home is worth, talk with the appropriate professionals about your options.

What is a deed in lieu of foreclosure?

A deed in lieu generally involves voluntarily transferring the property to the lender instead of proceeding through foreclosure. Whether it is available, what debts are affected, and what consequences may apply depend on the circumstances and the lender's requirements.

Discuss this option with your lender and a qualified professional before making a decision.

What about bankruptcy?

Bankruptcy can involve significant legal and financial consequences. If you're considering bankruptcy as a way to address foreclosure, speak directly with a qualified bankruptcy attorney. We are not bankruptcy attorneys and do not provide bankruptcy advice.

What if I owe more than just the mortgage?

Plenty of homeowners do. Along with the mortgage there may be:

• Delinquent property taxes
• HOA or association balances
• Judgment liens
• Contractor or mechanic's liens
• Other recorded liens
• Utility or municipal issues
• Second mortgages, HELOCs, or other debts secured by the property

Understanding all known liens and obligations is important before evaluating a sale. We can't promise every lien gets paid — what gets paid at closing depends on the numbers and on who has to agree.

You don't have to figure this out alone

If you're facing foreclosure, it can be difficult to know which direction to take. Start by understanding the facts:

• What do you owe?
• What is the home worth?
• What deadlines are involved?
• What options has your lender given you?
• Do you have equity?
• Would selling make sense?

The goal is to get clear on your situation before making a major decision. Compare your options and make the decision that makes sense for your circumstances.