How foreclosure works in Tennessee

The notices you will receive in Tennessee, in order

1. Default and acceleration letter

   From your servicer, under the terms of your deed of trust, before the sale is advertised

   Many Tennessee deeds of trust require a letter that names the default, says what you must pay to cure it, and gives a cure date at least 30 days away. It should also explain your right to reinstate and to go to court to dispute the default. Read your own deed of trust, because the terms differ.

   Deed of trust terms

2. Notice of trustee's sale by certified mail

   Mailed by the trustee on or before the first newspaper publication

   It goes by registered or certified mail, return receipt requested, to the property address and to any other address you gave your lender in writing at least 30 days before. It gives the sale date, time and place. Sign for it, and call the trustee named on it.

   Tenn. Code Ann. § 35-5-101(d)

3. Newspaper notice of sale

   At least twice in a newspaper in your county; the first at least 20 days before the sale

   This is the public notice of the auction. The 20 days are the shortest notice Tennessee law allows, so treat the first ad as a deadline warning.

   Tenn. Code Ann. § 35-5-101(a)(1), (b)

4. Online posting of the sale

   Posted by a third-party internet posting company for at least 20 days in a row

   The posting must be open to the public online. The sale notice must name the posting company's website, which is also where most postponements are announced.

   Tenn. Code Ann. §§ 35-5-101(a)(2), 35-5-104(a)(7)

5. Postponement notices

   Announced at each scheduled sale and posted online; mailed at least 10 days ahead if the delay is more than 30 days

   A sale can be moved more than once without a new newspaper ad, as long as it is held within one year of the original date. If it is moved more than 30 days, the new date, time and place must be mailed to you by regular mail at least 10 calendar days before.

   Tenn. Code Ann. § 35-5-101(e)

6. Trustee's sale and trustee's deed

   On the sale date, at the physical place or bidding website named in the notice

   The trustee auctions the home and gives the buyer a trustee's deed. Under many deeds of trust, if you stay after the sale you become a tenant at will of the buyer and may owe reasonable rent.

   Tenn. Code Ann. § 35-5-101(g)

7. Detainer warrant

   Filed by the buyer in General Sessions Court if you do not leave

   The buyer cannot simply change the locks. It must bring an unlawful detainer case to get possession. Read the court date on the warrant and go to the hearing.

   JCR, LLC v. Hance (Tenn. Ct. App. 2023)

The legal steps in Tennessee

1. Missed payments and pre-foreclosure

   Federal rules generally bar the servicer from starting foreclosure until you are more than 120 days behind. Tennessee no longer requires a separate state notice of the right to foreclose, so act as soon as you fall behind. Your deed of trust may require a default letter first.

   12 C.F.R. § 1024.41(f)

2. Notice of sale mailed to you

   The trustee must send you a copy of the sale notice by registered or certified mail, return receipt requested, on or before the date of the first newspaper publication. It goes to the property address and to another address if you gave one in writing.

   Tenn. Code Ann. § 35-5-101(d)

3. Sale advertised

   The sale must be advertised at least two times in a newspaper published in the county, with the first notice at least 20 days before the sale, and posted online by a third-party internet posting company for at least 20 days in a row.

   Tenn. Code Ann. § 35-5-101(a), (b)

4. Trustee's sale

   The trustee auctions the home to the highest bidder, in person or on an online bidding website. A sale can be postponed more than once, for up to one year from the original date, without new newspaper ads. If it is postponed more than 30 days, a new notice must be mailed to you at least 10 days before the new date.

   Tenn. Code Ann. § 35-5-101(e), (g)

5. After the sale

   State law provides a two-year right of redemption, but most deeds of trust waive it, so the sale is usually final. The lender can sue for a deficiency within two years. If you do not move out, the new owner must bring an unlawful detainer case in court to get possession. That case decides only who has the right to possession.

   Tenn. Code Ann. §§ 66-8-101, 35-5-118, 29-18-119(c); JCR, LLC v. Hance (Tenn. Ct. App. 2023)

Common questions in Tennessee