Once the 120-day preforeclosure period required in most cases under federal law expires, the Tennessee foreclosure process can move relatively quickly. If you’re worried about foreclosure and you live in Tennessee, you should learn about the state's foreclosure laws and procedures so you won't be caught off guard.
In this article, you’ll learn about Tennessee foreclosure procedures and your rights during the process.
When Does Foreclosure Begin in Tennessee?
In the past, homeowners often had difficulty working out a foreclosure alternative (called "loss mitigation" in the mortgage servicing industry) before losing the home to a foreclosure sale. But on January 10, 2014, a new federal law took effect that prevents a bank from foreclosing in most cases until the loan account is over 120 days delinquent. (12 C.F.R. § 1024.41 (2025).)
Additionally, a borrower’s application stays the period because the law prevents dual tracking (going forward with foreclosure procedures while a loss mitigation application is pending).
Under federal law, the servicer can't initiate the foreclosure process until it reviews the application and one of the following occurs:
- the bank denies the borrower a loss mitigation option (and the appeal period ends)
- the borrower decides not to go forward with any of the loss mitigation offers or
- the borrower fails to act in accordance with the requirements of a loss mitigation option. (12 C.F.R. § 1024.41 (2025).)
Even if the borrower is over 120 days delinquent, if the borrower submits a complete application before the foreclosure starts, the foreclosure can't begin until one of the events above occurs.
Foreclosure Process in Tennessee: Judicial vs. Nonjudicial Explained
In Tennessee, the bank can foreclose by filing suit in court (a judicial foreclosure) or following a series of legal steps that don't involve the court system (a nonjudicial foreclosure). Here’s a short description explaining how each type of foreclosure works.
Judicial Foreclosure in Tennessee: What Homeowners Need to Know
The bank will file a complaint in court asking for a decree of sale from the judge (permission to sell the house). If you don’t answer the suit, the bank will get a default judgment allowing it to hold a foreclosure sale.
If you choose to challenge the foreclosure, the case will proceed through the litigation process. If the bank wins the case through summary judgment or at trial, the judge will enter a judgment against you that allows the bank to sell the property at a foreclosure sale.
Tennessee Nonjudicial Foreclosure Process: Overview
With a nonjudicial foreclosure, court action isn’t required. Instead, the bank will follow the out-of-court process outlined in state law. After completing the required state procedures, the bank will sell the home at a foreclosure sale.
In Tennessee, most banks use the nonjudicial process because it’s faster and cheaper than litigating a lawsuit.
How a Nonjudicial Foreclosure Works in Tennessee
To complete a nonjudicial foreclosure, the bank must publish a notice of the foreclosure sale in a newspaper on three occasions, with the first publication taking place at least 20 days before the sale. If the county doesn't have a newspaper, the bank must post the notice in several public places 30 days before the sale. (Tenn. Code §§ 35-5-101 to 35-5-103 (2025).)
On or before the first publication date, the bank must mail a copy of the notice of sale to the borrower. (Tenn. Code § 35-5-101 (2025).) The foreclosure is complete after the sale takes place.
Homeowner Rights During Foreclosure in Tennessee
Tennessee homeowners facing foreclosure often get the right to reinstate the loan based on the loan contract and, under state law, you might get a redemption period after the sale. You might also consider filing for bankruptcy.
Can You Reinstate a Loan in Tennessee Before Foreclosure?
Some states allow borrowers to stop the foreclosure sale by “reinstating” the loan or catching up on all missed payments, fees, and costs in one lump sum. Tennessee law doesn't give borrowers the right to reinstate the loan unless the loan is a high-cost home loan. (Tenn. Code § 45-20-104 (2025).)
But the loan contract might do so, and if not, the bank might agree to allow you to reinstate. Or you might qualify for an alternative to foreclosure after applying for a loss mitigation option. You’ll want to call your servicer to find out your options.
Does Tennessee Have a Foreclosure Redemption Period?
Some states have a law permitting the borrower to repurchase the home after a foreclosure sale during a “redemption period.” Under Tennessee law, the redemption period is two years after the foreclosure unless the loan contract expressly waives the right to redeem. (Tenn. Code §§ 66-8-101 through 66-8-103 (2025).)
Filing for Bankruptcy
Can a Bank Sue for Deficiency After a Tennessee Foreclosure?
If the foreclosure sale doesn’t bring in enough money to pay off the mortgage debt, some states allow the bank to get a deficiency judgment for the difference between the sale price and the total loan balance.
In Tennessee, the bank can file a lawsuit after the nonjudicial foreclosure to obtain a deficiency judgment. If you can show that the sale price was materially less than the property's value, the deficiency amount may be limited to the difference between the outstanding debt and the property's fair market value at the time of the sale. (Tenn. Code § 35-5-117 (2025).)
Where to Find Tennessee Foreclosure Laws Online
To find Tennessee’s nonjudicial foreclosure laws, go to the Tennessee Code (sections 35-5-101 to 35-5-111 and 66-8-101 through 66-8-103.)
Tennessee Foreclosure Help: Resources for Homeowners
The Tennessee Housing Development Agency (THDA) offers resources and assistance for homeowners facing foreclosure. As a HUD-approved counseling agency, THDA can connect you with a HUD-certified housing counselor. A HUD-approved housing counselor can provide helpful information (at no cost) about ways to prevent a foreclosure.
Legal Aid Society of Middle Tennessee and the Cumberlands provides assistance to eligible homeowners facing foreclosure.
Why You Should Speak With a Tennessee Foreclosure Attorney
This article provides details on foreclosure laws in Tennessee and federal mortgage servicing laws, with citations to statutes so you can learn more. Statutes change, so checking them is always a good idea. How courts and agencies interpret and apply the law can also change. And some rules can even vary within a state. These are just some reasons to consult an attorney if you’re facing a foreclosure.
While this article provides an overview of a typical foreclosure in Tennessee, remember that state and federal foreclosure laws are complicated, and cases can proceed differently depending on the circumstances. Also, servicers and banks sometimes make mistakes or skip steps, but most foreclosure errors go uncontested. In cases where the servicer or foreclosing bank omitted a required step, made an error, or violated state or federal foreclosure laws, you could have a defense that could force it to start the foreclosure over, or you might have leverage to work out an alternative.
If you believe your rights were violated, talk to a local foreclosure attorney or legal aid office immediately. A lawyer can give you information about different ways to fight the foreclosure in court, as well as information about different ways to potentially avoid foreclosure.