In our Ask the Expert Section, we recently received a question from Rudy, he asks, “My wife and I hit some difficult times awhile back. In between a pay cut at work and a few other high bills, it was difficult to make payments on our Knoxville home. We want to stay in our Knoxville home and now have the money to continue making payments. I’ve heard about loan modifications. Can a Knoxville loan modification save my Knoxville home?”
Rudy, you have a few different options to avoid foreclosure on your Knoxville home. A loan modification is one way that you could avoid foreclosure and stay in your Knoxville home.
A Knoxville loan modification changes the terms on your loan. There are three different types of loan modifications. A principal reduction reduces the amount that is owed your home. A rate reduction reduces the interest rate. A capitalization reduction takes what is past due and add it on the principal amount. Principal reductions are the most common (and successful) loan modifications. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Lisa, she asks, “I’ve been missing payments on my Knoxville home ever since I lost my job awhile back. I’ve started working two jobs to try to make ends meet, unfortunately, it is not enough to cover my mortgage payment. I want to do a short sale on my Knoxville home, but am afraid it might be too late. How long will I be able to stay in my Knoxville home?”
Lisa, if you opt to pursue a short sale on your Knoxville home, you’ll be able to stay in your Knoxville home until the sale is complete. Short sales can take anywhere from 4 to 6 months to complete, and sometimes can even take longer. Once the sale is approved, it generally has to close within 30 days. Generally, it is encouraged that the seller stay in their home until the sale is complete.
Foreclosure can happen in Tennessee quickly once the process gets started. This is why it is extremely important to get the short sale process on your Knoxville home started as soon as possible. While foreclosure can sometimes be halted or delayed, it is generally best to not wait until your home is in foreclosure. Read the rest of this entry »
A Knoxville loan modification is one way to avoid foreclosure on your Knoxville home. The Home Affordable Modification Program is one of the programs that is available to Knoxville homeowners to help modify their loans. So ,what exactly is HAMP? And, can it help you save your Knoxville home?
The Home Affordable Modification Program was started back in 2009. The latest housing scorecard report shows that HAMP has helped over 1.8 million homeowners. The program has helped save homeowners on average $547 per month with an average total monthly savings of $22.9 billion per month nationally. At least, 1.2 million American homeowners have helped modify their loans permanently. Read the rest of this entry »
Knoxville short sales are not for every buyer. If you’re thinking about buying a Knoxville short sale, here are three essential traits every Knoxville short sale buyer must have for short sale success.
One big thing that every Knoxville short sale buyer must have is time. When it comes to short sale approval, both buyers ans sellers tend to be at the mercy of the lender. A buyer that is under the gun to close on a home should avoid buying a short sale. Lenders aren’t going to approve a Knoxville short sale simply because a buyer is threatening to walk. If you want to buy a Knoxville short sale, be sure you have the time to wait for approval.
Unfortunately, when it comes to buying a short sale, buyers have very little control over the situation. The short sale lender determines if and when the sale will close, which is why buyers must be flexible. Once short sale approval is received, buyers often have only 30 days to close on the home. Buyers must be flexible about waiting for approval then able to close quickly. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Leo, he asks, “I’m in the process of starting a short sale on my Knoxville home. I was relocated a year ago and struggled to sell my Knoxville home for what it was worth. It’s been difficult to keep making two house payments now that I’ve moved to Arizona. I’ve heard that if my Knoxville short sale isn’t completed by the end of the year, I may have to pay income taxes on my forgiven debt. Is that true?”
Leo, you ask a very valid question about Knoxville short sales. In 2007, the Mortgage Forgiveness Debt Relief Act and Debt Cancellation was enacted to help distressed homeowners from paying income tax on their forgiven debt. Last year, the Mortgage Forgiveness Act was extended through the end of the year.
Under the act, any borrower who sold their Knoxville home in a short sale, modified their loan, or went into foreclosure, is not required to pay taxes on that forgiven income. The rule applies to up to $1 million for those filing his/her taxes as an individual and up to $2 million for those filing their taxes jointly. Also, the act only applies to homes that are considered to be a primary residence, where the owner has live for the past three out of five years. Read the rest of this entry »
For Knoxville homeowners facing foreclosure, a loan modification can seem like a good option. A homeowner can remain in their Knoxville home and get back on track with their payments. Unfortunately, a large percent of loan modifications fail; with a recent quarterly report from Congress showing 27% of all completed loan mods end up in redefault.
While a Knoxville loan modification can help you avoid foreclosure, it is not always the best solution for everyone. If you’re thinking about completing a loan modification, here are a few situations where a loan modification is not a good solution.
You’re Deeply Underwater
In some cases where a Knoxville homeowner is deeply underwater, a loan modification isn’t always the best option. It’s more of a band-aid for a bullet hole than a foreclosure solution. While a loan mod can make you’re payments more bearable, it doesn’t change the fact that you owe more on your home than it is worth.
You’re Income Isn’t Stable
Obviously, for a loan modification to be successful, you need to have stable income. There is no use jumping through all of the hoops to save your Knoxville home if you won’t be able to keep making payments. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Harry, he asks, “I bought my Knoxville home back when the market was hot. I hit some tough times at work and was making barely enough to cover my mortgage when the interest rate increased. These tough times were very trying on my marriage and am now going through a nasty divorce. I want to do a short sale on my Knoxville home, but my soon-to-be ex-wife will not have anything to do with it. Will my she need to sign off on the short sale?”
Harry, I’m very sorry to hear about your situation. I’m not an attorney, therefore, I cannot provide legal advice on the situation. However, I can answer your question on a basic level. If your soon-to-be ex wife is in title to your Knoxville home, she will be required to sign off on all documentation involved in the short sale, since she has legal ownership in the home. No one is ever able to sell real estate without the permission of the others in title. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Chase, he asks, “I’m behind on on the mortgage payments on my Knoxville home. I went through a nasty divorce, then racked up some medical bills. I want to avoid foreclosure on my Knoxville home, and have thought about doing a short sale. The problem is, if there are any costs involved, I will not be able to pay them. Can my lender charge me to do short sale on my Knoxville home?”
Knoxville short sales are generally seen as a last ditch effort to avoid foreclosure, which is why doing a Knoxville short sale will not cost you anything. Commissions, closing costs, and past due property taxes will all be paid for by the lender. You should be extremely weary of anyone that tries to charge you for short sale services, as that is a major red flag for short sale scams. Read the rest of this entry »
Knoxville short sales are a common way to avoid foreclosure. A Knoxville short sales allows you to avoid foreclosure, does less damage to your credit, and allows you to buy a home sooner. Unfortunately, not all short sales get approved. So, what are some common reasons why Knoxville short sales get denied?
Lack Of Hardship
When it comes to approving Knoxville short sales, lenders want to see a short sale is a last ditch effort. If they are going to take a loss on a home, they want to see there is a good reason. Thus, why lender require documented hardship to approve a Knoxville short sale There are wide variety of reason lenders will acept for hardship including job loss, wage reduction, death, illness, and relocation. An experienced short sale agent will be able to help you prove your case to a lender.
Price Is Too Low
When it comes to pricing a Knoxville short sale, the price can’t be too high or too low. It must be high enough to please the lender, and low enough that the buyer is motivated to buy it. Negotiating this fine line can be tricky, which is why it is important to have an experienced agent. If a lender is wanting too high of a price, an experienced agent will be able to help vindicate the price. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Hal, he asks, “I’ve missed 6 months worth of mortgage payments on my home. My wages were cut my 30% and it made it difficult for me to continue making payments. I’m scared that foreclosure on my Knoxville home. How quickly does foreclosure happen in Tennessee?”
Hal, there is no exact timeline for how quickly foreclosure happens in Tennessee. I, though, offer you a brief explanation of how the foreclosure process work in Tennessee.
Tennessee is a non-judicial foreclosure state, which means lenders are able to foreclose without a court order. This is why the foreclosure process can happen in Tennessee quickly. Deeds of trust in Tennessee contain a power of sale clause, which allows lenders to foreclosure without going to court.
Here is a breakdown of the Knoxville foreclosure process:
What it is: When you miss a payment. It can be a missed payment to your lender, on property taxes, or on homeowners association dues. A lender can technically file for foreclosure after one missed payment, however, typically they wait until a homeowner is a few months behind. Read the rest of this entry »