Tennessee at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Tennessee statutes cover both kinds of foreclosure sale: a sale by a trustee under a deed of trust or mortgage without a court case, and a sale under a court's order or decree. Either way the sale must be advertised in a newspaper starting at least 20 days before the sale and posted online, and the trustee or other selling party must mail a copy of the sale notice to the borrower. Tenn. Code Ann. §35-5-101(a), (b), (d); Tenn. Code Ann. §66-8-101(2)-(3) Show the source textIn any sale of land to foreclose a deed of trust, mortgage, or other lien securing the payment of money or other thing of value or under judicial orders or process, advertisement of the sale must be made |
| Tax sale excess proceeds | Tennessee collects delinquent property taxes through a court case in which the court orders the property itself sold, subject to a right of redemption of up to one year from the order confirming the sale. After that order is entered, any interested person may file a motion in the same court asking for the excess sale proceeds, and the court pays them out in order: remaining taxes, lienholders, then the taxpayer who was a defendant in the tax case or a person who inherited that taxpayer's interest. Excess proceeds that are left become subject to the state's Uniform Unclaimed Property Act, and a motion can still be filed in the court until the money is actually forwarded to the state. Tenn. Code Ann. §67-5-2702(a), (c); Tenn. Code Ann. §67-5-2501(a); Tenn. Code Ann. §67-5-2701(a) Show the source textA motion for excess proceeds may be filed in the court in which the proceeding is pending until such time as the funds are actually forwarded to the state pursuant to the Uniform Unclaimed Property Act. |
| Redemption after the sale | Tennessee law makes real estate sold for debt redeemable for two years after the sale, and that includes a sale under a deed of trust or mortgage made without a court case. The right does not apply if the deed of trust or mortgage expressly waives the right of redemption, and in a court-ordered sale the court may order a sale on credit that leaves no right of redemption. Tenn. Code Ann. §66-8-101; Tenn. Code Ann. §66-8-102 Show the source textReal estate sold for debt shall be redeemable at any time within two (2) years after such sale |
| Rules for recovery companies | For property held by the State Treasurer's Unclaimed Property Division, an agreement to pay someone to locate or recover it is enforceable only if it is in a signed record that describes the property and the services, states the value before and after the fee, and charges no more than ten percent of the recoverable value or $50, whichever is greater. An agreement made within two years after the property was paid or delivered to the Treasurer is void, and the section does not apply to an owner's agreement with an attorney to pursue a claim for specifically identified property. The Department of Treasury also says a locator must be licensed as a private investigator in Tennessee, that locator contracts are reviewed by the Division, and that payment is made directly to the owner. Tenn. Code Ann. §66-29-176(b), (c), (e) Show the source textDoes not provide for compensation of more than ten percent (10%) of the value of the recoverable property or fifty dollars ($50.00), whichever is greater |
How surplus funds arise in Tennessee
When a home in Tennessee is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Tennessee
We confirm the sale figures in the public record, identify which office in Tennessee is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Tennessee that program is the Unclaimed Property Division, Tennessee Department of Treasury.
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Tennessee law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Tennessee
Tennessee regulates this kind of service. For property held by the State Treasurer's Unclaimed Property Division, an agreement to pay someone to locate or recover it is enforceable only if it is in a signed record that describes the property and the services, states the value before and after the fee, and charges no more than ten percent of the recoverable value or $50, whichever is greater. An agreement made within two years after the property was paid or delivered to the Treasurer is void, and the section does not apply to an owner's agreement with an attorney to pursue a claim for specifically identified property. The Department of Treasury also says a locator must be licensed as a private investigator in Tennessee, that locator contracts are reviewed by the Division, and that payment is made directly to the owner. (Tenn. Code Ann. §66-29-176(b), (c), (e))
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Tennessee
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Tennessee, from locating the funds to filing the claim.
It depends on the kind of sale. After a court-supervised sale the court usually holds the money; after a trustee's or tax sale the trustee or the county usually does. Tell us the county and the sale date and a specialist will check.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.