The Laws of Tennessee mortgage is mainly governed by state statutory and common law. Mortgagees are regulated by federal or state law or agencies.

• In Tennessee the lender must file a complaint against the borrower and obtain a decree of sale from a court having jurisdiction in the county where the property is located before foreclosure proceedings can begin.
  
  
• Generally, if the court finds the borrower in default, they will give them a set period of time to pay the delinquent amount, plus costs.
  
  
• If the borrower does not pay within the set period of time, the court will then order the property to be sold.
  
  
• Under anti-deficiency laws, if the mortgage is a purchase money mortgage for the purchase of a dwelling occupied by the purchaser, the purchaser will not be held responsible for any deficiency and the lender can only recover the property and the proceeds of a subsequent sale.
  
  
• The purchaser does not pay any deficit between the sale proceeds and the outstanding loan balance.