As a homeowner, you may be facing a notice of foreclosure. It can be difficult to understand Tennessee foreclosure laws and how they apply to your situation. The “we buy houses in Hendersonville, TN” team at My Tennessee Home Solution can help you work through your options.
Tennessee Foreclosure Laws Allow Two Options
Tennessee allows either a judicial or nonjudicial foreclosure process. The mortgage holder can decide which route to take.
How a Judicial Foreclosure Process Works
During a judicial process, the mortgage lender asks the court to approve a foreclosure sale. As the homeowner who is in default, you are legally obligated to respond to this request. If you don’t mount a defense, the lender (by default) has the right to sell the property through an auction. If you file a defense, the court will determine whether the foreclosure auction can proceed.
How a Nonjudicial Foreclosure Process Works
Foreclosure laws in Tennessee allow the mortgage holder to follow a series of foreclosure steps without going to court. After completing these steps, the mortgage holder can undertake a power of sale foreclosure. Homeowners cannot mount a defense for this process, so they’d have to negotiate with the mortgage lender before it reaches this step.
Rights Hendersonville, TN, Homeowners Have When Facing Foreclosure
Understanding foreclosure legalities in Tennessee doesn’t require homeowners to gain a law degree. Instead, the key information that most homeowners want to know involves understanding their rights, which can include:
- Receiving a preforeclosure letter
- Receiving a foreclosure notice
- Whether special protections apply
- Receiving any profit from the foreclosure sale
Trying To Stop a Foreclosure on a Hendersonville, TN, Home
If you want to stop the foreclosure in Hendersonville, TN, the best option is to pay off the loan balance. You can also try to catch up on late payments. Some people choose to file for bankruptcy.
Another option is to sell the house before the foreclosure auction occurs. You can then use the proceeds to pay off the mortgage and avoid having a foreclosure on your credit report.
Taking Advantage of Your Redemption Rights
If the foreclosure sale goes through, some homeowners have the right of redemption available. Under this process, state law allows the homeowner to try to buy back the home for up to two years after the foreclosure process. However, most lenders require you to sign documents that waive your right of redemption as part of settling the loan once the home is in foreclosure.
When Facing Foreclosure, Let the Home Buying Experts at My Tennessee Home Solution Advise You
State foreclosure law is something many people probably don’t pay attention to until they find themselves in this situation. Developing a foreclosure defense is easier when you understand all your options. You might even be able to avoid a foreclosure or borrower default situation by reaching out for help from the as-is buying experts at My Tennessee Home Solution.
Our team can help you understand all your options. If your mortgage lender approves a short sale to prevent foreclosure, we’ll make a fast offer. To learn more, call us today at (615) 933-5431.
