- Who sends it
- The trustee or substitute trustee signs it and gives it to the buyer; it is recorded at the county register of deeds
- What it starts
- The buyer's claim to possession, the lender's 2 years to sue for any shortfall, and any surplus claim
- Do this first
- Check your deed of trust for a redemption waiver, and write to the trustee about any surplus
What this deed is in Tennessee
The trustee's deed passes title from you to the buyer at the trustee's sale. Under many Tennessee deeds of trust, as quoted in JCR, LLC v. Hance (2023), anyone still living in the home after the sale becomes a tenant at will of the buyer and agrees to pay reasonable rent for the time after the sale.
Redemption: usually waived
Tenn. Code Ann. § 66-8-101 gives a right to redeem land sold for debt within 2 years after the sale. For a sale under a deed of trust, that right does not apply if the deed of trust waives it, and a waiver of the equity of redemption is enough. Most deeds of trust include a waiver, so for most homeowners the sale is final on the sale day. Look for the word "waive" in your deed of trust and ask a lawyer if you are unsure.
Deadlines that start at the sale
- Deficiency: the lender can sue for any shortfall, but must do so within 2 years after the sale, not counting time a bankruptcy is pending, or sooner if the debt's own time limit runs out first. See the deficiency lawsuit page.
- Surplus: if the home sold for more than the debt and costs, the extra should go to lower lienholders and then to you. We did not find a Tennessee statute setting the claim steps or a deadline, so write to the trustee now. See Tennessee foreclosure surplus funds.
- Redemption, only if not waived: 2 years after the sale (§ 66-8-101).
What to do this week
- Write to the trustee named on your sale notice. Ask for the sale price, the payoff, the costs and any surplus, and give a mailing address. Keep a copy and proof of mailing.
- Do not sign a contract giving a finder company a share of your surplus before you ask the trustee yourself.
- Plan your move or talk to the buyer. Get any cash for keys offer in writing.
- If you think the sale broke your deed of trust, talk to legal aid now. Tennessee courts have said a wrongful foreclosure defense can be raised in the buyer's detainer case, but you carry the burden of proof.
- Read after a Tennessee foreclosure sale and our national trustee's and sheriff's deed page.
The rest of the Tennessee process
See how foreclosure works in Tennessee, the timeline, ways to stop it and free help in Tennessee, or read the national guide to this letter.
Common questions
Can I buy my home back after a Tennessee trustee's sale?
Only if your deed of trust did not waive redemption. Tenn. Code Ann. § 66-8-101 allows 2 years, but most deeds of trust waive it, which ends the right at the sale.
Do I have to pay rent to the buyer after a Tennessee foreclosure?
Many deeds of trust say that if you stay after the sale you become a tenant at will of the buyer and owe reasonable rent for that time. Read your deed of trust and get legal advice before you pay or refuse.
Who has my surplus after a Tennessee trustee's sale?
The trustee received the sale money. Ask the trustee in writing for an accounting and whether any surplus was paid out or deposited with a court.
Other Tennessee letters
- Default and acceleration letter (notice of default and right to cure)Tennessee has no state-required notice before a foreclosure is advertised, so the warning letter you get comes from your deed of trust. Many Tennessee deeds of trust require a letter naming the default, the amount to cure and a cure date at least 30 days away. Once that date passes, the lender can call the loan due and order a trustee's sale.
- Notice of Trustee's Sale (often titled Notice of Substitute Trustee's Sale)This notice sets the date, time and place of the auction of your home. Since July 1, 2025, Tennessee requires the sale to be advertised at least twice in a county newspaper, the first at least 20 days before the sale, and posted online for at least 20 days in a row. The trustee must mail you a copy by certified or registered mail by the first newspaper date.
- Notice of postponed (rescheduled) trustee's saleA Tennessee trustee's sale can be postponed one or more times without new newspaper ads, as long as it is held within one year of the original date. Each new date is announced at the sale and online. You get a mailed notice only if the sale is pushed back more than 30 days.
- Detainer warrantIf you stay after a Tennessee trustee's sale, the buyer must bring an unlawful detainer case to get possession, usually in General Sessions Court. The detainer warrant tells you the court date. The hearing can come within days, and if you miss it, the court can enter a default judgment and issue a writ of possession.
- Deficiency lawsuit (summons and complaint for a deficiency judgment)A Tennessee lender can sue for the balance left after a trustee's sale, but it must sue within 2 years after the sale. The law presumes the sale price was fair market value. If you prove the home sold for materially less, the court uses fair market value instead.