The Memphis Foreclosure Options Sheet
Tennessee foreclosures happen without a judge, so almost everything that matters is written down somewhere you can read it. This sheet shows you the clock, how to find your own dates, the options people usually try (in the order they usually try them), what happens after a sale, and where the free help is. It is information only. It doesn't tell you which option to pick, because that depends on your loan, and the free counselors at the end can look at it with you.
1The clock, start to finish
2Three things that catch people
1. The date on the ad is not a promise.
A sale can be postponed repeatedly with no new newspaper ad, as long as it is held within one year of the original date (35-5-101(e)). New dates are announced at the sale location and online (delays under five days skip the online part). You only get a letter if the sale moves more than 30 days, and that comes by regular mail at least 10 days before the new date. Always confirm the current date with the trustee.
2. The certified letter goes to the address on file.
That means the property address and, if different, your last known mailing address or one you designated in writing at least 30 days before the first ad. If you've moved, tell your servicer in writing, the way your loan papers say to.
3. The two-year buy-back right is usually already gone.
Tennessee law gives two years to redeem after a trustee sale, unless the deed of trust waives it, and a waiver of the "equity of redemption" or similar words is enough (66-8-101). The standard Tennessee form waives it. Check your own deed of trust before you count on it.
3How to find YOUR dates this week
1. Gather every letter.
The notice of default, any notice of sale, anything from a law firm.
2. Search the published notices.
The Memphis Daily News public notices page (memphisdailynews.com/notices) lists foreclosure notices by borrower, property address, advertised auction date, and date of first notice. Notices can run in other Shelby County papers too.
3. Call the trustee or law firm named on the notice.
Ask: What is the current sale date? Has it been postponed? Can you confirm that in writing?
4. Pull your recorded documents.
The Shelby County Register of Deeds, (901) 222-8100, 1075 Mullins Station, Building W3, Suite W165, Memphis 38134 (Monday to Friday, 8:00 to 4:15), has your deed of trust and the recorded appointment of substitute trustee.
5. Keep talking to your servicer.
Write down who you spoke with and when.
4Catch up or pay off before the sale
In the standard Tennessee deed of trust, your right to reinstate runs until the later of five days before the sale or whatever other period Tennessee law sets. To reinstate, you pay everything that would be due as if the loan had never been accelerated, fix any other default, and pay the lender's enforcement costs (attorney fees, inspection fees). The lender can require certified funds. Ask for the figure in writing, with the date it's good through, because costs get added along the way.
5The options, in the order people usually try them
1. Catch up (reinstatement).
A lump sum that brings the loan current, described above. The catch: it needs cash up front, and the figure includes the lender's foreclosure costs, not just missed payments.
2. Forbearance or a repayment plan.
Forbearance pauses or lowers your payments for a while. It does not erase what you owe, and you may repay it as a lump sum, at the end of the loan, or in higher payments later. A repayment plan adds part of the past-due amount to your regular payment over a set period. The catch: both assume the money problem is temporary. Ask exactly how and when you repay.
3. Loan modification.
The servicer permanently changes the loan terms, usually to lower the payment (a lower rate, a longer term, or missed payments added to the balance). Expect to describe your hardship (job loss, disability, medical bills, divorce, a death in the family), back it up with documents such as pay stubs and bank statements, and often make a few trial payments first. Federal rules help here: if your servicer receives a complete application more than 37 days before the sale, it must evaluate you for every option it has within 30 days, and generally can't hold the sale while that review is open (12 CFR 1024.41(c) and (g)). The catch: the 37 days is a cliff, and very small servicers are largely exempt (12 CFR 1024.30(b)), so ask what applies to you.
4. Refinance.
A new lender pays off the old loan. The catch: it has to approve you on credit, income, and what the house appraises for, and the payoff has to close before the sale.
5. A bridge or hard-money loan.
Short-term money secured by the house. The catch: these loans usually mean higher interest, upfront fees (points), and a short term, often with a large payment due at the end. Miss one and the new lender can foreclose on the same house. Have a lawyer read every line.
6. Bankruptcy.
Filing chapter 13 stops a foreclosure proceeding as soon as the petition is filed and lets you make up past-due payments over a plan that generally runs three years, up to five. The catch: it only works if you file before the sale is completed, court fees alone are $235 plus a $75 administrative fee before any attorney fees, and you need credit counseling within 180 days before filing. This is a decision for a bankruptcy attorney.
7. Short sale.
The lender agrees to let the house sell for less than you owe, and you receive no sale proceeds. The catch: Tennessee lets a lender sue for the leftover balance (35-5-117), so ask for any waiver in writing before you sign. Some lenders pay moving help in a short sale; ask yours. You start with your servicer's loss mitigation application, and the servicer and the loan's owner both have to approve.
8. List with an agent.
Best when there's equity, since the house sells at market price. The catch: it takes time, the house has to show well, a buyer using a loan faces an appraisal and inspection, and a contract can fall apart late. The sale date doesn't wait for a listing; whether to move it is the lender's choice. At closing the loan is paid from the sale money and anything left over is yours.
9. Sell to a cash buyer.
A buyer without a loan can buy as-is, with no repairs and no financing to fall through. The catch: the price is usually lower than a fully prepared listing, so compare. Get the offer in writing, ask for proof of funds, close through a title company or attorney, and never sign a deed outside a closing.
6After a sale
7You're not alone
Most people go through the same stages. First it feels like a mistake. Then anger, at the bank, the letters, whoever is closest. Then bargaining: if I work harder, if I explain, maybe they'll let me keep it. Then a heavy sadness, because this house holds years of your life. Then a steadier place where you can look at the paperwork and ask what's actually possible.
None of that is weakness. It's what happens when something important is at risk. From any of those stages, the next step is small: open the envelope, make one call.
8Free help
In Memphis
- Memphis Fair Housing Center, a HUD-approved housing counseling agency that helps people facing foreclosure: (901) 432-4663, 200 Jefferson Avenue, Suite 1075.
- Memphis Area Legal Services, legal help for people who qualify: (901) 523-8822 or (866) 361-9001.
- Other HUD-listed Memphis agencies offering mortgage delinquency counseling: United Housing, Inc., (901) 272-1122; Frayser Community Development Corporation, (901) 354-9401; NACA's Memphis counseling office, (901) 348-0115. Call first and ask if they're taking foreclosure cases.
9Rescue scams to walk away from
Foreclosure draws people who want money. These are the warning signs:
- They want a fee up front. The federal Mortgage Assistance Relief Services rule and Tennessee law don't allow a company to take your money before you have a written offer from your lender and have accepted it. The CFPB puts it simply: you don't have to pay anyone to help you avoid foreclosure.
- They ask you to sign or transfer your deed. The FTC warns that if you transfer the deed, you're not likely to get it back.
- They tell you to stop paying or stop calling your lender.
- They promise to save your home or guarantee a result.
If you've been approached, call the Tennessee Attorney General at (615) 741-1671 or the FTC at (877) FTC-HELP. A HUD counselor can tell you whether an offer is real, at no charge.