Knoxville Foreclosure Timeline: What Do You Need To Know?

stop-foreclosureWith 1 in 3 Knoxville homeowners underwater on their mortgage, foreclosures in Knoxville are not uncommon. If you are one of the many Knoxville homeowners that could be facing foreclosure, it's important to know what the Tennessee foreclosure process is like, so you know what you are up against. If you are facing foreclosure, time is essential, there is a very limited window to explore you alternatives to avoid foreclosure. Here is a breakdown of the Knoxville foreclosure process: Default What it is: When you miss a payment. It can be a missed payment to your lender, on property taxes, or on homeowners association dues. A lender can technically file for foreclosure after one missed payment, however, typically they wait until a homeowner is a few months behind. Pre-Foreclosure -- The Window of Opportunity What it is: The time between your first missed payment and the legal notice. There is no set time for this. A lender could decide to wait 2 months before they file for foreclosure or they could wait 2 years. Regardless, if you've missed payments, this is the time you can explore your options to avoid foreclosure on your Knoxville home. Options to avoid foreclosure on your Knoxville home include: doing a short sale, doing a deed-in-lieu of foreclosure, loan modification, or refinancing. Legal Notice What it is: When the homeowner receives notice that the foreclosure process has been started.  Tennessee is a non-judicial foreclosure state. Most Deeds of Trust contain a "power of sale clause" which allows the lender to start foreclosure proceedings in the case of default. Notice of the sale must be printed in a county newspaper at least three times before the sale date. Also, if the homeowner is still in possession of the property, they must receive written notice of the sale date at least 20 days prior to the sale. Bank Sale or Auction Date What it is: The lender appoints a substitute trustee to conduct the auction. The lender typically makes the first bid and the home goes to the highest cash bidder. If no one bids higher, the lender takes possession of the house. Deficiency Judgement What it is: The deficiency judgment is what is still owed to the bank after the sale. If the mortgage amount was $125,000 and the house sold for $100,000, the amount that the lender could pursue you for as a deficiency judgement is $25,000. The foreclosure process in Tennessee happens quickly, which is why it is so important to explore your options to avoid foreclosure early on. While every situation is different, it is important that you know what options you have to avoid foreclosure. My team and I are dedicated to helping Knoxville homeowners avoid foreclosure. We've helped countless homeowners explore their options. If you're facing foreclosure, please let me know if there is anyway that my team and I can assist you. You can give us a call at 865-696-9002 or send an email to [email protected]. Also, be sure to check out our Knoxville Short Sale and Foreclosure Solutions Page.

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