Foreclosure & Alternatives Law
How Can a Lender Foreclose on a Property in Tennessee?
Most often, a property is foreclosed in Tennessee without judicial involvement. Most mortgages contain power of sale clauses which allow lenders to foreclose on properties without suing borrowers in court. In order to conduct this type of non judicial foreclosure, the lender must provide the borrower and the public with the notice required in the mortgage agreement or by state law. Further, the lender must conduct the sale in accordance with the terms of the mortgage agreement or state law.
If the mortgage agreement does not contain a power of sale clause then the lender must go to court and request that a decree of foreclosure be issued. Then the lender must follow the public notice and sale terms set forth by the court and state law.