The first step to recover foreclosures in TN is to inform your lender when you can't make your payments on time. Lenders do not want your home because they usually end up losing money in the foreclosure recovery process.

Lenders are therefore motivated to try all options in the Tennessee foreclosure process which may include forbearance, partial claim, payment modification and payment suspension. However, you will have more options if you are only a payment or two behind.

There are three key actions to take in the Tennessee foreclosure recovery process:

1. Answer any correspondence that you receive from your lender. These notices will contain important information on the foreclosure recovery process in Tennessee and pending legal action.
2. Raise short-term money to make a missed payment. This may include the sale of a second car or jewelry, or a currently-unemployed household member may be able to get a job.
3. Avoid foreclosure recovery scams. Many companies that claim to be able to stop your foreclosure will charge you for free information such as Tennessee foreclosure listings. Others may attempt to obtain the title to your house.
   

Action Steps
The best contacts and resources to help you get it done

Know how Tennessee foreclosure laws will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of Tennessee foreclosure law. You should also read your loan documents to know what your lender can do if you can't make your payments.

I recommend: ForeclosureS.com provides the contact information for the Attorney General’s Office in Tennessee and links to specific legislation regarding foreclosure in Tennessee. In addition to a summary of Tennessee law, American Foreclosure Specialists provides a description of possible strategies for avoiding a foreclosure on your home.

Get assistance with Tennessee home foreclosure recovery information

There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender if needed.

I recommend: Consumer Credit Counseling Service offers an online tutorial through its CredabilityU website to help you keep your home, as well as many other financial tips. Visit the National Foundation For Credit Counseling’s Homeowner Crisis Resource Center for information and tools to get started understanding your foreclosure options.

Retain one of many Tennessee foreclosure attorneys

If you sign documents, you may need a foreclosure attorney. Tennessee attorneys that do not handle foreclosure law may be able to make a referral.

I recommend: Roy C. Desha represents clients in credit and bankruptcy matters throughout central Tennessee. Michael J. Philbin in Nashville includes real estate law as a major part of his practice.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Speak with a manager when you contact your mortgage company as part of your Tennessee foreclosure recovery process. The front-line operator will normally be interested only obtaining your payments that are past due. Ensure you have your loan number, household expenses and recent pay stubs handy and provide a brief, honest account of your financial circumstances. You will also want to get the direct contact information for the manager to whom you are speaking.