Are you a homeowner in Tennessee who is facing foreclosure? If so, you might find yourself wondering what can be done to protect your credit and your family.
This blog post will provide an overview of the Tennessee foreclosure process. Find out how to avoid foreclosure and what options you have if you can’t make your mortgage payments. Keep reading if you are feeling lost and don’t know where to go for help.
What is Foreclosure?
Foreclosure occurs when a mortgaged property is seized following nonpayment of the mortgage. Generally, federal law prohibits foreclosures until 120 days after your mortgage becomes past due. There are, however, some exceptions.
How to Avoid Foreclosure
There are a few options available to homeowners in default on their mortgages.
Talk to Your Lender
The first step you should take if you are having trouble making payments is to contact your lender. It may be possible to get back on track by making smaller payments over a more extended period of time, and your lender could be able to arrange that.
Request a Loan Modification
If you are having trouble making your mortgage payments, you might be able to apply for a loan modification. Your loan’s interest rate or repayment period might be modified to prevent foreclosure.
Sell Your Home
In times of financial difficulty, you may want to consider selling your home. Although this may not be an easy decision, it can prevent you from going into foreclosure.
How to Delay Foreclosure
To slow down or halt foreclosure, you can do a few things.
Reinstate the Loan
Unless the loan is a high-cost home loan, Tennessee law does not provide a right to reinstate it before the sale. A borrower may, however, cure a default after acceleration and reinstate the loan under many deeds of trust. You should check your loan documents to see if you have a reinstatement right and, if so when you must complete it.
Redeem the Property
Some states allow the foreclosed borrower to redeem the house after the foreclosure sale. Unless the mortgage or deed of trust explicitly waives the right of redemption, which these documents frequently do, Tennessee gives the borrower two years to redeem the property after foreclosure. Find out if you waived your redemption rights in your loan documents.
File for Bankruptcy
Bankruptcy has shortcomings, but it can help prevent foreclosure as creditors are not allowed to collect debts after filing bankruptcy. Contact a bankruptcy lawyer to learn more about your options.
The Foreclosure Process in Tennessee
Defaulting your mortgage payments in Tennessee may result in a judicial or nonjudicial foreclosure. Taking over a home through foreclosure can be complicated, so it is important to understand how they work. In Tennessee, the foreclosure process can take up to six months to complete.
Lenders initiate judicial foreclosures by filing lawsuits asking courts for orders allowing foreclosure sales. In the absence of a written response, the lender automatically wins the case. Defending the lawsuit can lead to a court review of the evidence, and the outcome will be decided by the court. The judge will enter a judgment and order the auction sale of your home if the lender wins.
Lenders who choose a nonjudicial foreclosure must follow the procedures outlined in the state statutes. A foreclosure sale can be held after the lender completes the required steps. Rather than litigating in court, most lenders choose the nonjudicial process because it is faster and cheaper.
The Consequences of Foreclosure
Foreclosure can have devastating consequences for homeowners and their communities. The foreclosure process can result in homeowners losing their homes and harming their credit scores. As a result, it may be difficult to obtain a mortgage or credit line. Furthermore, foreclosure can be emotionally draining.
Foreclosure can also negatively affect communities. A foreclosed neighborhood can have a decrease in property values, leading to a decline in tax revenues and an increase in crime.
Resources for Homeowners Facing Foreclosure in Tennessee
If you are facing foreclosure in Tennessee, several resources are available to you. The U.S. Department of Housing and Urban Development offers homeowners counseling and assistance to prevent foreclosure.
Avoid Foreclosure by Selling Your Home for Cash in Tennessee
Selling your house for cash could give you peace of mind if your home is facing foreclosure. At Favor Home Solutions, we know you are going through a difficult time, so you can count on us to guide you through the entire process and provide you with a fair cash offer for your home.
We will take care of:
- Closing on the date of your choice
- Handling all the paperwork
- Paying all the closing costs
- And much more!
If you’re interested in hearing more about getting a free, no-obligation offer for your home, contact us today!