Lenders in Tennessee issue mortgages to homeowners with the expectation that the home loan will be paid back on time with interest. Unfortunately, some homeowners do not meet this obligation. When a lender is not receiving what they are due on a mortgage they issued, they may need to initiate foreclosure proceedings.
Foreclosures begin when the homeowner misses a mortgage payment. After a certain amount of time has passed, lenders can assess late charges on the missed payment and can begin trying to contact the homeowner to figure out why they are not paying their mortgage. After more time has elapsed, the mortgage servicer can send an official demand letter stating which terms of the mortgage the homeowner is in violation of.
Once the required amount of time has passed, the servicer can refer the mortgage to the foreclosure department and foreclosure proceedings can begin. Depending on state law, it may be necessary to take certain steps, such as recording notice of the foreclosure, publishing foreclosure details in area newspapers, going to foreclosure hearings and filing the necessary documents with the court. Finally, once these steps are taken, the home will be sold. Because Tennessee is a non-judicial state, this can happen within a couple of months. Once sold, the homeowner will be evicted.
This is only a very general overview of the foreclosure process in Tennessee. There are state-specific requirements regarding how much time must pass before each step can be taken. Because foreclosing on a home is a complex endeavor, many lenders choose to seek legal guidance, so that no crucial step is overlooked.