Knoxville short sales are complicated transactions. Any unexpected situation can complicate a short sale and can sometimes ruin a short sale altogether. So, what is the the #1 thing that will mess up a Knoxville short sale?
Unexpected liens are one thing that can throw a big wrench in any short sale. Unexpected liens can be anything ranging from IRS liens to HOA lines to judgements from a credit card company. Unexpected liens can cause serious issues in a Knoxville short sale due to the fact that they cause further negotiation with a short sale lender. In many cases, lenders are not willing to payoff these liens at closing, due to the fact that they can seriously cut into what the lender makes off the sale. Lenders are willing to pay closing costs, real estate commissions, and past due taxes in a short sale, but other non-mortgage liens are a different story to them. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Norm, he asks, “I started a short sale on my Knoxville home 9 months ago. We’ve been behind our our mortgage for over two years. After trying to complete a loan modification, we finally approached an agent about completing a Knoxville short sale. Everything was submitted to our lender a little over 8 months ago. It seems like this has been going on forever and we haven’t received any response. We’re beginning to get worried. Why would our lender take so long to respond if they’re just going to deny our short sale?”
Norm, you’re not alone in your frustration. Unfortunately, the waiting without answers is the true nature of the short sale beast. It’s beyond frustrating for all parties involved. I truly wish there were some sage words of wisdom I could offer that could make the process go quicker, unfortunately that is not the case. With a short sale, you are truly at the mercy of the lender. Read the rest of this entry »
If you’re a Knoxville homeowner who has been through foreclosure, it can take sometime to financially recover. Buying a Knoxville home again may seem like something far off in the distant future. Here are some tips for applying for a mortgage after foreclosure.
Talk To A Mortgage Professional
If it has a been a few years since you went through foreclosure on your Knoxville home, there is nothing wrong with sitting down with a mortgage professional to see where you stand. Depending on the type of loan program and where your credit is, there may be some time before your eligible to buy a home. A loan officer can give you an idea of where you stand and what you may need to accomplish before being approved for a mortgage. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Paul, he asks, “I’m behind on the mortgage payment on my Knoxville home. I’ve tried to do a loan mod, but my request was denied. My lender suggested that I do a short sale on my Knoxville home. I don’t want to owe my lender any more money than I have to, so I want to get the highest price possible. Who determines the price for a Knoxville short sale?”
Short sales are no different than traditional real estate sales when it comes to setting the price. You’ll hire a real estate agent and they’ll provide you with a list of comparable homes that have sold in your area. Based on that information, you will set a price for your Knoxville home. The lender will play absolutely no role in setting the price for your home. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Javier, he asks, “I completed a short sale on my Knoxville home a year and a half ago. My wife and I have worked really hard to get ourselves back on our feet and are ready to buy another Knoxville home. I’ve heard that it can take a really long time before we’re able to buy another Knoxville home. How long do we have to wait prior to buying a Knoxville home again?”
Javier, this is something that many Knoxville homeowners who have been through foreclosure or completed a short sale wonder about. Every situation is a little bit different. The waiting period can depend on the type of loan that is being applied for along with what the credit requirements are for the loan. Read the rest of this entry »
In October of last year, the Home Affordable Foreclosure Alternatives (HAFA) Program announced some changes to their short sale program. One of the most important changes that was announced was an increase in relocation assistance to those who complete a Knoxville short sale. Read on to find out more about what these changes could mean for you if you complete a HAFA short sale.
Under the new HAFA short sale guidelines, any Knoxville homeowner that completes a short sale on or after February 1st, will be eligible to receive $10,000 of relocation assistance. In order to qualify for the relocation assistance, the home must be a primary residence for the seller and they must be required to vacate the home due to the short sale. In addition, any homeowner to completes a deed-in-lieu of foreclosure through the HAFA program would also be eligible to receive the relocation assistance. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Peter, he asks, “I’m over a year and a half behind on my Knoxville mortgage payment. After trying to to modify my loan for over a year, I finally gave up and decided to do a short sale. I’m afraid that it is too late to do a short sale on my Knoxville home. What happens if my lender forecloses prior to finishing my short sale?”
One problem with Knoxville short sale is the bureaucracy involved with the process. The foreclosure department doesn’t always talk to the short sale department, which is why foreclosures can sometimes be started while a short sale is in process. Or in some cases, loans can even be sold while a short sale is in process. For all parties involved, this can be a major source of frustration. Read the rest of this entry »
For those Knoxville homeowners who have completed a short sale this year, the extension of the Mortgage Forgiveness Debt Relief Act and Debt Cancellation is extremely important. The Mortgage Forgiveness Act expired on December 31, 2013, meaning that without the extension through 2014, any homeowner who completed a short sale would be responsible for paying taxes of the forgiven debt. Luckily, both the House of Representatives and the Senate extended the act through 2014, and President Obama is expected to sign off on the extension soon.
So what does the extension of the Mortgage Forgiveness Act mean for Knoxville homeowners who have been through a short sale? Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Olivia, she asks, “I am doing a short sale on my Knoxville home. I bought the home back when the market was hot in 2007. I owe $40K more than what it would sell for and the house is much larger than I need now, since my kids have moved out. I managed to stay current on my Knoxville mortgage payments, even though the payments have been difficult for me to make. I want to buy a home again right after my Knoxville short sale is approved. Is that possible?”
Olivia, this is a very common question that many people ask after completing a Knoxville short sale. This question can be difficult to answer because it all kind of depends on the situation. Here are a few different scenarios that influence a person’s ability to buy after a Knoxville short sale. In most cases, there is some kind of wait time before you are able to buy a home again.
Credit score is a large factor that will influence your ability to buy again. How much your credit score is influenced by a Knoxville short sale depends on how long you missed payments, how your short sale was reported, and if you missed other payments like credit card or car payments. There is no given number for how much a credit score with drop after a short sale, it just depends on the situation. In order to buy a Knoxville home again, you will need to have a credit score high enough to qualify for a loan. Read the rest of this entry »
For those Knoxville homeowners who have completed a short sale or plan on completing a short sale, the extension of the Mortgage Debt Relief Act is very important. On December 31st, 2013, the Mortgage Debt Relief Act expired, meaning that any homeowner that completed a short sale this year would have to pay income taxes on the forgiven debt, if the act is not retroactively extended by the end of the year.
So, will the Mortgage Debt Relief Act be extended?
It all comes down to Congress, who is currently in their last session of the year. If Congress opts to retroactively extend the act, any homeowner that completed a Knoxville short sale this year would not be required to pay income taxes on the forgiven income, so long as they meet the requirements. If the act is not extended, any homeowner who completes a short sale this year would be responsible for paying taxes on their forgiven debt. Luckily, the Mortgage Debt Relief Act is one of the items on the agenda for Congress to vote on. Read the rest of this entry »