As a homeowner with a mortgage, you may miss a payment at some point. Not making a payment, however, may trigger foreclosure proceedings. Here’s what can happen under Tennessee foreclosure law if you fall behind on home loan payments.

Stages in the Tennessee Foreclosure Process

1. Breach or Demand Letter

When more than 30 days pass after a missed payment, your lender or loan servicer will send a breach or demand letter to you. The letter usually arrives 45 to 60 days after your first missed payment. Its purpose is to confirm you’ve violated the terms of your loan agreement and to offer you the opportunity to remedy the violation by paying the loan installment and any associated late fees.

2.  Referral to Foreclosure Department

If you can’t answer the breach and pay what you owe, the mortgage servicer refers the debt to its foreclosure department. About 90 days after the first missed payment, the mortgage holder or servicer retains a lawyer to start foreclosure proceedings. The attorney will then send you notice of foreclosure and publish it in a local newspaper.

3. Nonjudicial or Judicial Sale Process

Tennessee home foreclosures can take place as nonjudicial proceedings or by judicial action. In nonjudicial proceedings, the property sale date is advertised for three weeks before an attorney sells the property at auction—a sheriff’s sale. In a judicial proceeding, the property cannot be sold unless a court issues an order of sale.      

Filing bankruptcy stops foreclosures and allows homeowners to catch up on past-due mortgage payments. At the Law Offices of Harry G. Lasser in Cookeville, TN, an experienced and compassionate bankruptcy law attorney will help save your home. Their conveniently located offices make it easy for you to get the legal advice and representation you need. Visit their website to learn more about how a Chapter 13 bankruptcy filing may help you protect your home. To schedule a free consultation, call (931) 372-9988.