Tenneessee Tax Sale

After the property is sold, the Clerk and Master reports to the court on the sale, and the court issues a decree confirming the sale. The decree concludes the tax sale, and usually contains a description of the property and complies with all legal requirements to properly pass title. Once completed, the buyer is entitled to possession and to all the rights and liabilities.

Prior to the filing of the motion to redeem, the movant must pay to the clerk of the court an amount equal to the total amount of delinquent taxes, penalty, interest, court costs, and interest on the entire purchase price paid by the purchaser of the parcel. The interest shall be at the rate of 12% per annum, which shall begin to accrue on the date the purchaser pays the purchase price to the clerk and continuing until the motion to redeem is filed.

Following entry of the order of confirmation of sale, any interested person, as defined in this chapter, may file a motion with the court requesting disbursement of any excess sale proceeds pursuant to this section.

"The county said I have a year!"

You have a year to redeeem, but you don't have the right to remain in the property .  The ONLY right you have is to redeem. You no longer have legal posession of the property until you redeem.       

"I never received a notice in the mail"

Notice of the sale is sent to the last known address of the present owner (as reflected in the assessor's records) and to anyone else with an legal interest in the property, if that person can be located after a reasonable search.

If you moved and did not notify the county where to send the tax bill, that is your fault. This does not invalidate the sale. It is also published in the newspaper of record in the county.  It is the responsibility of the property owner to register the property owner's name and address with the assessor of property of the county in which the land lies.

If you are living in a house owned by somone else (a deceased relative) and you didn't pay the property taxes, This does not invalidate the sale. The notice was mailed to the owner of record and the address of record at the county courthouse.  

"What is excess proceeds?  How much money can I get?" 

After the tax sale, once the order confirming the sale is signed by the Chancellor (usually 2-3 weeks) any interested person (owner, executor, heir, mortgage company or other lien holder)

EXAMPLE: If the total due at the tax sale was $5,000 (the opening bid) and the property was sold for $100,000 you may be able to receive the difference ($95,000). BUT, the amount is reduced each month by the interest paid to the investor that bought the property. 
They are earning 1% in interest a month, thats 1% of the purchase price. In the example above that equals $1,000.    

Even if you were not living in the property, if you are child of a deceased owner, you may be entitled to receive the excess proceeds.     

"Where do I request to receive excess proceeds?" 

You should call or go the county Clerk & Master (Chancery Court)