Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In Tennessee, foreclosure is a legal process that allows a lender to terminate a borrower's interest in a property due to default on mortgage payments. Tennessee primarily uses the non-judicial foreclosure process, which means that the foreclosure can proceed without court intervention if the mortgage agreement includes a power of sale clause. This clause authorizes the lender to sell the property to recover the unpaid loan balance after providing the borrower with proper notice. The process begins with the lender sending a notice of default to the borrower and then a notice of sale, which must be published in a local newspaper for three consecutive weeks before the sale. The sale is typically an auction, and the highest bidder becomes the new owner of the property. If the foreclosure is judicial, which is less common, the lender must file a lawsuit and obtain a court order to foreclose. Tennessee law also provides a redemption period, which allows the borrower a certain amount of time after the sale to reclaim the property by paying the full sale price plus additional costs. It's important for homeowners facing foreclosure in Tennessee to consult with an attorney to understand their rights and any potential defenses they may have.