What to Do If You're Behind on Mortgage Payments in Tennessee

Falling behind on your mortgage can feel overwhelming, especially when you're not sure what your options are. Whether you're one payment behind or several months into the stress spiral, the good news is: you still have choices even if foreclosure feels like it's right around the corner.

This guide breaks down what Tennessee homeowners need to know when they’re behind on payments, and what you can do to protect your credit, your equity, and your peace of mind.

Step One: Don’t Panic—Get Clear on Where You Stand

The first thing to do is figure out exactly how far behind you are and what kind of communication you've received from your lender. Have you just missed your first payment? Or have you received a notice of default?

In Tennessee, lenders aren’t required to go through court to foreclose on a home. This is called a non-judicial foreclosure, and it can move fast, sometimes in as little as 60–90 days after default. That’s why acting early is key.

Step Two: Know Your Options

Here are the most common ways Tennessee homeowners can respond when they fall behind on their mortgage:

1. Reinstatement
If you can catch up on all missed payments (plus fees), your lender may allow you to reinstate the loan. This only works if you can come up with the full amount quickly.

2. Loan Modification
You may be able to work with your lender to adjust your loan terms. This could include extending the loan, lowering the interest rate, or rolling missed payments into the balance.

3. Forbearance or Repayment Plan
If your hardship is temporary, lenders may offer a short-term pause on payments or spread the missed amount over future payments.

4. Sell the Property
If keeping the home no longer makes sense or isn't financially possible, selling may be your best option—especially if you still have equity.

This is where many homeowners think they have to list with a real estate agent, make repairs, and wait months for a buyer. But there’s a faster way.

Can I Sell My House If I’m Behind on Payments?

Yes. You can sell a house with a past-due mortgage, even if you're in pre-foreclosure. In fact, selling before foreclosure gives you more control and a better financial outcome.

Many homeowners in Tennessee choose to sell their homes off-market, directly to a buyer who can close fast. This can help you:

• Avoid foreclosure on your credit

• Skip repairs or clean-up

• Get cash or debt relief quickly

• Stop the stress of collections or legal notices

What If I Don’t Have Equity?

If you owe more than your home is worth, you may need to explore:

• Short sale: Selling for less than the balance owed with lender approval.

• Creative options: Some buyers can take over payments or use strategies like “subject-to” to help stop foreclosure while transferring ownership.

Every situation is different. But don’t assume you’re out of options just because you’re behind.

How to Know If It’s Time to Sell

Ask yourself:

• Can I realistically catch up on payments soon?

• Is this home still right for my situation?

• Am I dealing with job loss, divorce, illness, or other stress that isn’t going away quickly?

If the answer to any of these is no, selling now could preserve your equity and give you a clean slate.

Final Thoughts

Being behind on mortgage payments is scary, but it doesn’t have to be the end of your financial future. Tennessee homeowners still have time to make smart moves, avoid foreclosure, and protect their credit.

If your home is in rough shape, needs work, or is in a rural area, selling as-is to a reputable local buyer may be the fastest and least stressful path forward.