Being behind on payments does not stop you selling. What it does is put a clock on the decision. Tennessee foreclosure moves faster than most people expect, so the useful thing is to know your number early rather than to wait and hope it resolves itself.
The Clock You Are Actually On
Tennessee is a non judicial foreclosure state. That means the lender does not have to sue you to foreclose, and the process runs through a trustee under the power of sale clause in your deed of trust. It moves considerably faster than the court driven process people picture.
The practical consequence is that the window between falling behind and a trustee sale being scheduled is shorter here than in a judicial state. Once a sale date is published, your options narrow fast.
None of this is legal advice and a Tennessee attorney is worth talking to. It is simply the shape of the timeline you are working against.
Whether There Is Anything Left For You
This is the question that decides everything else. If the house is worth more than what you owe plus the arrears, a direct sale can clear the loan, stop the process, and put something in your pocket.
If you owe more than it is worth, that is a short sale, which needs the lender to agree and takes considerably longer. I will tell you plainly which one you are in rather than let you find out late.
Either way, tell me what you owe and roughly how far behind you are at the start. It is the most useful thing you can give me and it is not something I will judge you for.
Plenty of people in this position have already moved out and are carrying two places, which is its own expense. If the house is standing empty, see sell a vacant house in Memphis.
If The House Is Somewhere Else
This is not a Memphis city limits thing. I buy in Bartlett, Cordova, Millington, Collierville and Germantown too, and you can see sell your house anywhere in Shelby County on the county page.
Same situation, other market: if the house is in Birmingham rather than here, that is sell a Birmingham house you are behind on.
What Listing Actually Nets You
Listing usually produces a higher gross price than a direct sale. Whether it produces a higher number in your account is a different question, and it is the one worth answering before you decide anything. Put your own figures in.
Commission is figured at 6 percent and seller closing costs at 2 percent, which are common but not universal. Carrying cost means taxes, insurance, utilities and upkeep. This is an illustration using your numbers, not an offer or an appraisal, and it deliberately assumes the listing sells at the price you entered.
The Numbers Behind That
| Line | Typical |
|---|---|
| Late fees and default interest | Compounding monthly |
| Attorney and trustee fees | Added to your payoff |
| Publication costs | Charged to you |
| Credit impact of a completed foreclosure | Years, not months |
| Time to sell conventionally | Often longer than you have |
| Agent commission at 6% | If you list it instead |
Everything above gets added to what you owe while you decide. That is why the number that matters is not what the house is worth today, it is what is left after the payoff, and that figure shrinks every month you wait.
Who you are dealing with
Hi, I am Torian. I buy residential property with my own capital in Memphis and across Shelby County, through TOPSICO LLC, a Tennessee limited liability company.
I am not an agent and not a broker. Nothing here is a listing and I am not representing you in a sale. If you want your house exposed to the open market, an agent will usually get you a higher price, and I will tell you that rather than talk you out of it.