Foreclosure process in Tennessee: notice, sale, and help

Is foreclosure in Tennessee judicial or non-judicial?

Both exist. THDA says foreclosure can happen “by judicial action or by newspaper advertisement” (a sale run by the lender’s trustee or attorney), and that advertisement is the most common. The law that governs sales by advertisement is Tenn. Code Ann. Title 35, Chapter 5, starting at § 35-5-101. Your deed of trust is the contract that gives the trustee the power to sell, and the law lets its own notice terms control in some respects (see below).

What is the timeline step by step?

Before any sale, the federal servicing rule applies. Under 12 CFR § 1024.41(f)(1)(i), a servicer generally may not make the first notice or filing for foreclosure unless the loan is more than 120 days delinquent. THDA describes the usual run: a late fee after about day 15, default at 30 days, and a demand letter around day 90 to 105.

What the 2025 law changed

Public Chapter 515 rewrote § 35-5-101. The online posting must be made by a “third-party internet posting company” and be publicly viewable. The notice itself must identify that company’s website (§ 35-5-104(a)(7)). The Secretary of State’s publications division keeps a public list of the companies. The advertisement requirement does not apply when the debt is $200 or less, or to any notice given under a contract in the mortgage or deed of trust itself, so your instrument may set different notice terms.

Older descriptions are out of date. THDA’s page says the lender’s attorney advertises “for three consecutive weeks,” and a 2009 Attorney General opinion described three newspaper notices. The enacted text of 2025 says at least two.

Mailing addresses

The trustee must mail the notice to the property address and also to your last known address, or one you designated for notices in writing at least 30 days before the first publication, if different.

Postponed sales

A postponed sale needs a new date and time, announced by posting with the internet company and at the date, time and place of the scheduled sale. If the delay is under 5 days, no internet announcement is required. If it is over 30 days, notice of the new date must be mailed at least 10 days before the sale. No new newspaper ad is needed.

An example

This is an illustration, not a prediction. If the first newspaper ad runs March 2, 2027, the earliest lawful sale date under the 20-day rule is March 22, 2027, with the online posting running for the same 20 continuous days. THDA says borrowers in non-judicial states like Tennessee can have “as little as two months” from the referral to the sale.

Do you lose the right to stop the process once the notice appears?

Not in every case. Under the federal rule, if a servicer receives a complete loss mitigation application more than 37 days before a sale, it generally must evaluate it within 30 days, and it may not move for foreclosure judgment, an order of sale, or conduct the sale unless one of the exceptions in § 1024.41(g) applies (for example, it has sent you a denial notice, or you reject all the options offered). After that window, you have fewer federal protections. Contact your servicer as soon as you suspect trouble.

What about the right of redemption and deficiency judgments?

The sources we could read do not state these rules, so we do not. Whether you can reclaim a home after the sale, and whether a lender can sue for the balance if the sale price is lower than the debt, depend on the Tennessee Code and your loan documents. A Tennessee lawyer or legal aid office can tell you before you sign anything. Do not assume either way.

Where can homeowners get help?

• THDA housing counselors are HUD-certified and free: 1-888-483-8432 or 615-815-2238, or Counselors@thda.org. They do not give money but help build a plan.
• HUD lists approved counselors by zip code: (800) 569-4287.
• Legal help: Help4TN lists legal aid and Tennessee Free Legal Answers.
• Scams: THDA warns against anyone who guarantees to save your home, asks for a fee for counseling or modification, asks you to sign over the deed, tells you to stop talking to your servicer, or takes your payments instead of the servicer. THDA’s page says help is free.

THDA’s Hardest Hit Fund reinstatement program is no longer accepting applications, per its program page.

Buying at a sale: the EPA lists foreclosure sales among the exceptions to the federal lead paint disclosure rule. For other costs, see Tennessee closing costs.