TN
Tennessee
Tennessee mortgage foreclosures are nonjudicial trustee sales, and the trustee accounts for the proceeds and holds any surplus for the parties entitled by priority. Tax sales are conducted through chancery court, and excess proceeds are held by the court clerk with a statutory period for the former owner to claim them.
Terms commonly used in Tennessee
These are legally different procedures and are kept separate on purpose. Make sure you are reading the one that matches your sale.
Most surplus funds claims in Tennessee arise from delinquent property tax sales, which are judicial sales handled through the Chancery Court in each county. When a property is sold for unpaid taxes and the sale price exceeds the taxes, interest, penalties, and court costs owed, the leftover money is called excess proceeds and is held by the court, usually through the Clerk and Master's office. Tennessee Code section 67-5-2702 sets out the process: after the court confirms the sale, any interested person can file a motion asking the court to disburse the excess proceeds. The law sets a priority order for who gets paid first: the tax entities owed unpaid taxes, then lienholders whose claims existed before the tax sale, then lienholders whose claims arose after the sale, and finally the former taxpayer/owner. If no one claims the money, it eventually becomes subject to Tennessee's Uniform Unclaimed Property Act. Courts have ruled that documents purporting to sign away a former owner's right to excess funds must be entered into knowingly and for real consideration, protecting former owners from being tricked out of their money by third parties.
Who may have a claim
- Former property owner (taxpayer)
- Heirs or estate of a deceased former owner
- Mortgage holders with liens predating the tax sale
- Judgment lienholders
- Tax entities (county, city, school district) owed additional taxes
- Junior lienholders arising after the tax sale
Priority among claimants may depend on title, recorded liens, court orders, probate and state law. Being listed here does not mean a claim will succeed.
Where the money may be held
- Clerk and Master of the Chancery Court (county)
- Tennessee Department of Treasury (Unclaimed Property Division, after abandonment)
Commonly required documents
- Government-issued photo IDCommonly required
- Motion for disbursement of excess proceedsCommonly required
- Proof of former ownership (deed)Commonly required
- Recorded deed, abstract, or affidavit of heirshipCommonly required
- Case/docket number for the tax saleCommonly required
- Death certificate and probate paperwork, if claiming as heirSituation-dependent
- Lien documentation, if claiming as a lienholderSituation-dependent
- Proof of service on other interested partiesCommonly required
- W-9 tax formSituation-dependent
Could an attorney be needed?
Attorney likely advisable
Circumstances where legal help is more often advisable or required
- • The former owner is deceased
- • Probate has not been opened
- • Multiple heirs disagree
- • The claimant is a trust or business entity
- • Competing lienholders filed claims
- • Ownership is disputed
- • There is an assignment or transfer of claim
- • The claim requires a motion or petition
- • A hearing is scheduled
- • Another party objects
- • There are bankruptcy issues
- • There are judgments or unresolved liens
- • The claimant is a minor or incapacitated person
- • The deadline may have expired
- • The claimant lives outside the United States
- • The court requires representation for an entity
- • Local rules require attorney involvement
Dependable Funds Recovery is not a law firm and does not provide legal advice. When legal representation is required or advisable, clients may be referred to an independent licensed attorney.
Deadlines
You can file a motion for excess proceeds any time before the funds are actually sent to the state under the Uniform Unclaimed Property Act. The presumption that funds are abandoned does not start until all motions are resolved or one year after the redemption period ends, whichever is later. There is no single fixed number of days to file, but acting sooner reduces the risk of the money being sent to the state.
- Trigger date
- expiration of the redemption period and confirmation of sale
- Varies by county or claim type
- Yes — verify locally
- Confirmed against an official source
- Yes
- Source last checked
- 2026-08-04
Typical claim complexity
Moderate
Why, specifically:
- • Requires filing a formal court motion and serving other parties
- • Statutory priority order determines who gets paid first
- • Redemption period timing affects when abandonment presumption starts
- • Some third parties attempt to buy former owners' claims cheaply
- • Process can vary somewhat by county Chancery Court
Complexity is shown so you can judge the work involved for yourself. A complex rating does not mean you cannot file on your own.
Official resources
Official links for Tennessee have not been verified and published yet.
Sources and review record
- Date last reviewed
- 2026-08-04
- Reviewed by
- Johnny — Dependable Funds Recovery
- Tennessee Code § 67-5-2702 – Motion setting forth claim to excess sale proceeds — Tenn. Code Ann. § 67-5-2702 (checked 2026-08-04)
- Escheat of Funds — CTAS-1604 (checked 2026-08-04)
County, court, and trustee procedures may differ from statewide practice. Laws, forms, fees, and deadlines can change without notice.
This page is general information, not legal advice, and is not a substitute for reading the controlling statute, rule, order or official instructions for your case.
Optional
Guided claim checker
Answer a short set of questions about your Tennessee situation and we will show you, in plain English, which review steps typically apply. This is general education only — not legal advice, and not a guarantee that funds exist or can be recovered.
Not sure which process applies to your case?
Submitting information does not create an attorney-client relationship, guarantee eligibility, or guarantee recovery. You may be able to pursue a claim directly through the applicable court, county, trustee, or government agency.