Selling your house to avoid foreclosure in Memphis
If you are behind on your mortgage, you have more options early than late. Selling before the foreclosure sale can protect your credit from a completed foreclosure and may leave you with equity in your pocket.
The most important thing is to act early and talk to your lender. A sale is one option, not the only one.
How foreclosure works in Tennessee
- Most residential foreclosures in Tennessee are nonjudicial, meaning they happen outside of court under the power of sale in the deed of trust.
- Under federal rules, a servicer generally cannot start foreclosure until the loan is more than 120 days past due.
- Before the sale, the trustee must publish a notice of sale in a newspaper at least 20 days ahead and mail you a copy.
- Tennessee has a two-year right of redemption after the sale, but most deeds of trust waive it, so do not count on it.
What we can do
- We can often close in a few weeks, which matters when a sale date is set.
- Your mortgage payoff comes out of the sale proceeds at closing, through the title company.
- If you owe more than the house is worth, we will tell you honestly whether a cash sale can work.
Options besides selling to us
- Call your servicer and ask about loan modification, repayment plans or forbearance.
- A HUD-approved housing counselor can help for free: (800) 569-4287.
- If you have equity and time, listing with an agent may net you more.
Want to see how a cash offer stacks up against listing? Run the comparison.
Sources
This guide is general information, not legal or financial advice. Rules change; confirm with an attorney or the agency named above.