Tennessee Foreclosure Laws

Knoxville Foreclosure Defense Attorney

A mortgage and deed of trust are the two main types of security interests involved in the foreclosure process. When attending closings on one's home or property, there are lengthy document signings that can get very confusing. The meaning of each document can become virtually undistinguishable to the average homeowner which is why it helps so much to have a Knoxville foreclosure lawyer guiding you through the process. It is imperative to know and understand what documents you are signing in regards to home/property ownership during a foreclosure action.

As a non-judicial foreclosure state, Tennessee does not legally bind a bank or lender to go through the courts or appear before a judge to get a judgment or sale date. Instead, a bank will begin foreclosure proceedings with a deed of trust containing requirements of a foreclosure and a power of sale; this allows a trustee to initiate default actions. A trustee must have a recorded deed of trust and provide a payoff statement including per diem prior to commencing foreclosure proceedings.

Beneficiaries, Lenders, & Borrowers

The three-party transaction involving a beneficiary, the lender, collecting interest from you, the borrower, and a trustee, is known as a Deed of Trust. Contingent upon the state, attorneys or a title company can act as a trustee. The trustee executes default proceedings if your loan amount is not paid.  A non-judicial foreclosure is what results, in this case. A Deed of Trust allows the foreclosure process to move more quickly, as one does not have to go through the courts to file a lawsuit, obtain a judgment or to go to sale. When a lender has provided adequate proof of delinquency and a payoff amount, including per diem, to a trustee, the Deed of Trust has served its purpose. A trustee then has the right to begin the process to foreclose, which progresses according to the law as stated in the deed of trust law as dictated by the deed of trust.

Mortgages

A Mortgage is a two-party transaction document signed by you, the borrower, and is presented to a lender securing the debt on your home. Because of the mortgage, a lien against the property will result and be recorded in public records. The transfer of a title will not occur unless or until the mortgage is fulfilled, and the lien released, when the debt is paid in its entirety.

If you are having trouble paying your mortgage and are facing the possibility of foreclosure, find out how we can protect your legal rights and options and possibly save your home. Contact a Knoxville foreclosure lawyer  at our firm today.