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Foreclosure Laws
Tennessee Foreclosure Procedure
Judicial Foreclosure Available: Yes, (rarely used)
Non-judicial Foreclosure Available: Yes
In Tennessee , foreclosures are usually done under a deed of trust accompanied by a note. Regular mortgages requiring judicial foreclosure are seldom used.
Non-judicial Foreclosure
Non-judicial foreclosure is usually done under a deed of trust which has a power of sale provision. If the deed of trust lacks such a provision, then the borrower must file a lawsuit (bill in chancery) and undertake judicial foreclosure.
Preliminary Notices
Contents
The foreclosure notice should give the names of the borrower and lender, describe the property, give any street address and state the time and place of sale. Advertising The notice of foreclosure sale must be first published at least 20 days before the sale. The ad must be published three different times in a newspaper in the county where the land is located.
Sale Procedures
Time
The time of sale shall be between the hours of 10 AM . and 4 P.M. on the day specified in the foreclosure notice.
Place
The sale is made at the place specified in the foreclosure notice, which is normally the courthouse door.
Manner
The sale is for cash to the highest bidder.
Deficiency
A lender may seek a deficiency judgment against persons who assume debt.
Redemption
The redemption time period is two year The right of redemption can be waived in the original deed of trust.
Texas Foreclosure Procedure
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: Yes, (using the power of sale clause in a deed of trust)
Preliminary Notices
Twenty-Day Demand Letter
The lender must mail a residential borrower a demand letter giving the borrower 20 days to come up with all the missed payments before proceeding with a foreclosure or sending the 21-day notice.
Twenty-One-Day Foreclosure Notice
The trustee must send a foreclosure notice stating the date, place and earliest
Method of Giving Notice
Advertising: Texas does not require preliminary advertising of the foreclosure in a newspaper.
Posting
Texas requires a foreclosure notice to be posted at the county courthouse door 21 days before foreclosure.
Recording/Filing
Texas requires a foreclosure notice to be filed with the county clerk 21 days before foreclosure.
Mailing
A foreclosure notice must be mailed to the borrower at the last known address as shown in the records of the lender 21 days before foreclosure.
Sale Procedures
The foreclosure sale must take place on the first Tuesday of any month, even if it is a holiday such as the Fourth of July or New Year's, but only after the proper preliminary notices have been given. The sale is on the courthouse steps by auction to the highest bidder for cash. Lenders, however, can bid by canceling out the balance due on the note, or some part of it. There is no organization to the sales. The trustee named in the deed of trust simply shows up and calls out the property for sale. The trustee or a lender representative then bids for the lender. Investors must find the trustee in a noisy crowd to bid against the lender. The title is transferred by means of a trustee's deed.
Redemption
There is not right of redemption in Texas.
Deficiency
Texas now limits deficiency judgments to the difference between fair market value and the balance owed on the loan, although the borrower may have to give evidence about the market value to be sure the deficiency is kept to a minimum.
Unusual Features
Texas is a very simple state in which to foreclose.
