Foreclosure

In Tennessee a mortgage is usually in the form of a "Deed of Trust." In a Deed of Trust the property owner(s) convey the property to a Trustee who holds a sort of title to the property until the debt is paid at which time the Trustee's interest in the property is "Released" back to the property owner(s).

In the event the borrower(s) default in the terms of the Deed of Trust (the most common default is the failure to make the payments, but there are other provisions of the Deed of Trust that would give the lender the right to foreclose such as the failure to pay taxes on the property, to keep the property insured, the failure to maintain the property, etc.) then the Trustee in the Deed of Trust (or a substitute or successor Trustee appointed by the lender) is authorized to advertise the property for sale at a public outcry (auction) by publishing an advertisement three times during a 21 day period in a newspaper of general circulation in the county where the property is located.

At the designated time and place the Trustee or his agent offers the property for sale to the highest bidder (usually the lender), and the funds received at the sale are applied to the debt held by the lender. Thereafter the Trustee deeds the property to the successful bidder at the foreclosure sale, and, as the new owner of the property, the successful bidder will seek to recover possession of the property through an eviction (which usually takes between 30 to 45 days in Tennessee), and then sell the property to recover the money which had been loaned to the borrower(s).

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