Redemption and Deficiency Judgments in Tennessee
Whether you can buy back your home after a foreclosure sale in Tennessee, and whether the lender can sue for what's still owed.
Short answer: Real estate sold for debt is redeemable for two years after the sale when it is sold under execution, under a court decree (unless the court orders a credit sale with no right of redemption), or under a deed of trust or mortgage without a court judgment. Tenn. Code Ann. §§ 66-8-101, 66-8-102
| Redemption after the sale | Real estate sold for debt is redeemable for two years after the sale when it is sold under execution, under a court decree (unless the court orders a credit sale with no right of redemption), or under a deed of trust or mortgage without a court judgment. However, for a non-judicial sale, the two-year right does not apply if the deed of trust or mortgage expressly waives it; a waiver of the "equity of redemption" or similar words is enough. Mirror source (FindLaw, current as of January 2, 2024). |
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| Deficiency judgments | Yes. After a trustee's or foreclosure sale, the lender may sue for the remaining balance. Absent fraud, collusion, misconduct or irregularity in the sale, the deficiency equals the debt before the sale plus foreclosure and sale costs, minus the property's fair market value at the time of sale. The sale price is presumed to equal fair market value unless the debtor proves by a preponderance of the evidence that the property sold for materially less. The suit must be brought by the earlier of two years after the sale (not counting time a bankruptcy is pending) or the general deadline for enforcing the debt. Mirror source (FindLaw, current as of January 2, 2024). Source: Tenn. Code Ann. § 35-5-117 |
More Tennessee foreclosure & homeowner law
- How Foreclosure Works in Tennessee
- Getting Your Home Back After a Tax Sale in Tennessee
- All Tennessee foreclosure & homeowner law rules
FAQ
Is there a right of redemption after foreclosure in Tennessee?
Real estate sold for debt is redeemable for two years after the sale when it is sold under execution, under a court decree (unless the court orders a credit sale with no right of redemption), or under a deed of trust or mortgage without a court judgment. However, for a non-judicial sale, the two-year right does not apply if the deed of trust or mortgage expressly waives it; a waiver of the "equity of redemption" or similar words is enough.
Can the lender come after you for the rest of the loan after foreclosure in Tennessee?
Yes. After a trustee's or foreclosure sale, the lender may sue for the remaining balance. Absent fraud, collusion, misconduct or irregularity in the sale, the deficiency equals the debt before the sale plus foreclosure and sale costs, minus the property's fair market value at the time of sale. The sale price is presumed to equal fair market value unless the debtor proves by a preponderance of the evidence that the property sold for materially less. The suit must be brought by the earlier of two years after the sale (not counting time a bankruptcy is pending) or the general deadline for enforcing the debt.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.