| There are many states the follow in court and | | | | anywhere from 10:00 am until 4:00 pm. |
| out of court proceedings, Tennessee is one of | | | | The home will be auctioned to the highest bidding |
| them. | | | | person at the sale. The winning bidder must be |
| In court foreclosures begin by the bank filing a | | | | prepared to pay that bid in cash. |
| complaint against the homeowner in an attempt | | | | In Tennessee, the sheriff has the right to set a |
| to get a decree of sale from the judge. Once | | | | minimum or beginning bid price for the auction. |
| obtained, the judge gives the homeowner a time | | | | This minimum acceptable price must be at least |
| frame in which they can save their house from | | | | fifty percent of fair market value. Of course that |
| sale. To do this, the home owner must pay all | | | | minimum or beginning bid price can be set at |
| missed payments and late fees and attorney's | | | | more than fifty percent, it just can't be less than |
| fees. | | | | that amount. |
| As in all states where both in court and out of | | | | A certificate of sale is awarded to the highest |
| court processes are followed, the determining | | | | bidder at the auction. However this winning bidder |
| factor as to which type of foreclosure the bank | | | | will not receive the deed until after the |
| will use is determined by the language in the | | | | redemption period has expired. The redemption |
| mortgage or deed of trust. If the document in | | | | period is an amount of time during which the |
| question contains a power of sale clause (most | | | | former owner of the home is permitted to come |
| do), then the bank can use the out of court | | | | up with the amount of the highest bid plus costs |
| process. They will invariably choose to do it in this | | | | and fees. If they can mange to do this they can |
| way, because it saves them time and money. In | | | | again re-gain ownership of the property. In |
| the absence of a power of sale clause, the bank | | | | Tennessee this redemption period is two years |
| must use the court system to sell the home that | | | | long. |
| is attached to the loan that is in default. | | | | Sometimes this right of redemption has already |
| Out of court proceedings in Tennessee begin with | | | | been waived in the language of the deed of trust. |
| the sale being advertised in a local paper, on three | | | | Deficiency judgments are allowed in Tennessee. |
| separate occasions, the first of these ads must | | | | This means that if the bank chooses to, it can |
| be run a minimum of twenty days in front of the | | | | continue to pursue the former owner of the |
| scheduled sale date. | | | | home for any money that was less the amount |
| If there is no newspaper published in the county | | | | of the loan that was not generated by the sale of |
| where the home is located, then the bank must | | | | the home. |
| post a public notice of the sale in five places in the | | | | But, most banks realize that his is a futile waste |
| county where the property is located. These | | | | of time and money on their part. If the former |
| notices must be placed on the door of the | | | | home owner could not make their payments, in |
| courthouse for the county in which the home is | | | | almost all cases they will have nothing of value |
| located. And, one or the other of these five public | | | | that the bank could get their hands on. This |
| postings can actually be placed anywhere the | | | | makes it a very strong likelihood, that the banks |
| bank's lawyer sees fit to put them. | | | | will leave the former home owner alone after the |
| This trustee sale or auction, is required to be held | | | | auction is complete. |
