Commercial Foreclosure Attorney in Memphis
Understanding the Commercial Foreclosure Process
In the present economic climate, the rate of commercial foreclosures in the United States is unfortunately higher than it was in the past. With so many businesses falling victim to hard times, more and more companies of all sizes are defaulting on their mortgages. Our commercial foreclosure attorneys in Memphis can help you work through the process.
Commercial foreclosure is a legal process in which the lender takes ownership of the property that the borrower pledged as collateral for the mortgage loan. The commercial foreclosure process is similar to that of residential foreclosures. State law dictates the exact procedures that a lender must follow in order to foreclose a commercial mortgage. The steps in a Tennessee commercial foreclosure include the following:
- Legal notice of Default. Most lenders in Tennessee do not initiate foreclosure proceedings until the borrower misses at least three payments. After the business owner defaults on a mortgage, the lender sends him or her a Notice of Default in the mail which includes the total amount that the borrower must pay in order to reinstate the loan.
- Notice of Sale. If the lender decides to pursue foreclosure, the lender must send the borrower a Notice of Sale twenty days before the sale of the property. During this time, the borrower may repay the loan to stop the sale. If the borrower cannot pay, the lender must publish the Notice of Sale in the local newspaper.
- Auction. Nearly all foreclosures in Tennessee are sold by auction. The sheriff conducts the auction, and the property goes to the highest bidder, which is usually the lender.
- Redemption period. In Tennessee, the borrower may reclaim his or her property within two years after the foreclosure. This is called the redemption period. In order to reclaim, the borrower must pay all the expenses of the foreclosure transaction in addition to the full amount of the loan.
The foreclosure process in Tennessee generally takes two months, and is rarely conducted in court.
Call 1-901-620-6347 for Memphis commercial foreclosure attorneys.
The commercial foreclosure lawyers in Memphis from the Law Office of Ben G. Sissman represents not only clients from Memphis, but surrounding counties north to the border: Shelby, Fayette, Tipton, Haywood, Lauderdale, Crockett, Dyer, Obion, Lake, and Gibson. For effective legal guidance, contact us today.