Tennessee Counties
State Auction Process in Tennessee
In Tennessee, the state auction process operates under a redeemable deed system that combines elements of tax liens and tax deeds. When a property owner fails to pay their property taxes, the property becomes subject to sale at a public auction. The primary purpose of the tax sale is to collect unpaid taxes and transfer the tax-defaulted property to a responsible owner. In Tennessee, public auctions for tax-defaulted properties are typically organized and conducted by the county or municipality where the property is located. Each county or municipality in Tennessee has its own procedures and processes for organizing these auctions. The county trustee’s office or the county tax assessor’s office is often responsible for managing the tax sale process and overseeing the public auctions.
Once the auction takes place, the winning bidder acquires a redeemable deed for the property. However, the new owner must wait for a period of one year before they can take possession of the property. During this redemption period, the property owner has the opportunity to come forward and pay for the redeemable deed. The property owner has one full year to redeem the deed by reimbursing the winning bidder for the amount paid at the auction, along with an additional 10% of the purchase price.
If the property owner fails to pay for the tax deed during the redemption period in Tennessee, the winning bidder of the redeemable deed will gain ownership of the property. Once the redemption period expires without the property owner redeeming the deed, the winning bidder’s ownership rights become absolute, and they become the new owner of the property.
Foreclosures in Tennessee
In Tennessee, foreclosure sales can occur through two methods:
- judicial action
- newspaper advertisement, commonly known as a Sheriff Sale.
Newspaper advertisement
The most common method used for foreclosure in Tennessee is the advertisement process.
In the advertisement foreclosure procedure, the lender’s attorney is responsible for advertising the property for sale in a newspaper that has general circulation within the county where the property is located. The advertisement is published for three consecutive weeks, and it includes details such as the property description and the sale date.
After the three-week advertisement period, the foreclosure auction takes place. The attorney or an auction company, acting on behalf of the lender, conducts the auction. Interested buyers can participate in the auction by submitting their bids, and the property is sold to the highest bidder.
The highest bidder at the foreclosure auction becomes the new owner of the property. It’s important to note that the winning bidder must fulfill any necessary requirements, such as providing the required funds or following specific procedures outlined by the lender or the attorney.
Judicial Foreclosure
In Tennessee, the process of judicial foreclosure is initiated when a lender files a lawsuit to obtain a court order for foreclosure. Here is an overview of the steps involved in the judicial foreclosure process in Tennessee:
- Lawsuit Filing: The lender, typically represented by an attorney, files a lawsuit against the borrower in the county where the property is located. The lawsuit seeks a court order allowing the foreclosure.
- Service of Process: The borrower is served with a summons and a copy of the foreclosure lawsuit, notifying them of the legal action being taken against them.
- Response Period: The borrower has a specified period of time to respond to the lawsuit. If the borrower fails to respond within the given timeframe, the court may proceed with a default judgment in favour of the lender.
- Court Proceedings: If the borrower contests the lawsuit, a court hearing is scheduled. Both parties present their arguments, and the court makes a decision based on the evidence presented.
- Court Order: If the court determines that the lender has a valid claim and the borrower is in default, it issues a court order for foreclosure. This order establishes the terms and conditions of the foreclosure sale.
- Notice of Sale: Once the court order is issued, the lender is required to publish a notice of sale in a newspaper of general circulation in the county where the property is located. The notice provides information about the foreclosure sale, including the date, time, and location.
- Foreclosure Sale: The property is sold at a public auction to the highest bidder. The auction is conducted by the lender’s attorney or a designated auction company. The winning bidder becomes the new owner of the property.
- Confirmation of Sale: After the foreclosure sale, the court must confirm the sale to finalize the transfer of ownership. The confirmation process typically involves a hearing where the court reviews the details of the sale and ensures it was conducted fairly.
In Summary
- Type of auction: redeemable tax deed
- Time and location: vary according to county or municipality
- Redemption period: 1 year
- Foreclosure method: newspaper advertisements and judicial foreclosures
- Foreclosure redemption period: depends on circumstance, typically 1 year in case of judicial foreclosure
Online Auction Resources
- Bid4Assets
- Auction.com
- Xome
- ServiceLink Auction – Tennessee
- Hubzu
- RealtyBid
- Govease
- HUD Homes USA
- Williams Auction
- Bank Foreclosures Sale
- Treasury Auctions
- Tennessee Surplus Real Estate
- Tennessee Real Estate Auctions
- LandSearch – Tennessee Auctions
- Parks Auction
- LandWatch – Tennessee Land Auctions
- United Country Auctions – Tennessee
- Morris Realty Auction
- Nashville Real Estate Auctions
- RLS & Associates – Tennessee Property Listings