When you’ve experienced some sort of hardship, sometimes it can be difficult to make ends meet. It can be scary being unable to make the mortgage payment on your Knoxville home. So, what should you do if you’ve missed payments on your Knoxville home?
It really all depends how late you are on your Knoxville mortgage payment. If you’re only a week or two late, but you still make your payment before 30 days, it is generally unlikely that the credit bureaus will be informed. (But, be sure to check with your lender.) You will likely be required to pay a late fee.
If you’re more than 30 days late on a payment, and anticipate that it will be difficult to continue making payments you have a few things to consider. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Elaine, she asks, “I’m at my wits end. I’ve been struggling to continue making payments on my Knoxville home. I’m at the point now where I don’t know what to do. I tried to do a loan modification, but haven’t had any luck. I’ve heard a Knoxville short sale can help me avoid foreclosure. It is the best solution to help me avoid foreclosure?”
Elaine, I’m very sorry to hear about your situation. It can be extremely stressful to face foreclosure and feel like you’re at the mercy of your bank.
To answer your question, a Knoxville short sale can help you avoid foreclosure on your Knoxville home. It will give you sometime to get back on your feet while the sale is negotiated, since most people are able to stay in their home rent free. A short sale will also make it possible for you to buy another home sooner. Read the rest of this entry »
For most Knoxville homeowner who have been thorough foreclosure or done a short sale, it can be difficult to imagine owning a home again. Fortunately, for many homeowners, owning a home again is not impossible and could happen sooner than you think, especially with programs like the FHA Back To Work Program. For a majority of homeowners that go through foreclosure or do a short sale, renting is a common way to help rebuild credit. Here are a few ways to be a stellar renter after a short sale or foreclosure.
Pay Rent On Time
This is a back to basics idea, but paying rent on time is important. Pay your rent on time, every time and you’re in good shape to rebuilding credit. It is important to show that you have stable income and can be responsible to make your rent payments. Read the rest of this entry »
For any Knoxville homeowner facing foreclosure, waiting for short sale approval can be a long process. The short sale approval process can take anywhere from 4 to 6 months to complete, and sometimes even more. So, how do you stay sane while waiting for approval on a Knoxville short sale? Here are a few things to keep in mind as you wait for short sale approval on your Knoxville home.
When awaiting short sale approval on your Knoxville home, don’t put your life on hold. It is important that you focus on things other than just waiting on short sale approval. Focus on what life will be like after the short sale is complete. Focus on finding a place to live after the short sale is done, saving money, and getting your finances in order
In addition, it is also very important to stay positive during the short sale approval process. Waiting for months on end can be very difficult and irritating, but it is important to keep the end goal in mind. A Knoxville short sale can be a long process, but it is very important to keep the end goal in mind. A Knoxville short sale allows you to avoid foreclosure, and get on with your life while doing less damage to your credit. While the waiting can be tough, just keep a positive attitude on the end result. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Danny, he asks, “I own quite a few pieces of investment property in Knoxville. I bought them back when the market was hot. I’d been holding on to them in hopes the market would turn and I could sell them for what I owe. But, at this point I’m so upside down on a few of them, I’m not sure what to do. I can’t find tenants to cover the rent and I have two kids on college. I’m paying my own mortgage, but can’t keep paying on these homes. Is it possible to do a short sale on investment property?”
Danny, it is possible to do a short sale on investment property. Lenders are willing to consider short sales in many different scenarios if a homeowner is able to provide the necessary documentation to prove they’ve gone through financial hardship. In recent years, lenders have seen the appeal of completing short sales because they generally get better sales prices and avoid the costly foreclosure process. Read the rest of this entry »
Knoxville short sales are good for everyone. Short sales are good for buyers, sellers, and lenders. Read on to find out how Knoxville short sales are win, win, win for everyone involved.
Knoxville short sales are win for sellers because they allow a seller to avoid foreclosure. A short sale allows a seller to avoid the stigma of foreclosure and provides a seller with a better overall outcome. In a short sale, a seller is able to stay in the home until the short sale is complete, oftentimes rent free. This allows a seller time to get back on his or her feet prior to the sale being complete. In addition, a short sale will do far less damage to a seller’s credit than that of foreclosure. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Josh, he asks, “I’m currently doing a short sale to try and avoid foreclosure on my Knoxville home. My wife got sick 9 months ago and had to stop working, which has made it difficult to keep paying the mortgage on our Knoxville home. I’ve tried to contact my lender about doing a loan modification, but haven’t had any luck. I’m scared a short sale may not be a good option. Are there any risks involved in completing a short sale?”
A Knoxville short sale is done as a last ditch option to avoid foreclosure. As far as the risks involved, there are not guarantees when it comes to doing a short sale, since a short sale is done to make the best out of a bad situation. With that being said, Knoxville short sale tend to have better outcomes than going through foreclosure, which is why they are very much so worth the effort. Read the rest of this entry »
For Knoxville homeowners who faced foreclosure or did a Knoxville short sale, the Mortgage Debt Relief Act was a saving grace. It saved homeowners from having to pay income tax on forgiven debt. Unfortunately, the Mortgage Debt Relief Act expired on December 31st, 2013. So, what does this mean for Knoxville homeowners that have gone through foreclosure this year or completed a Knoxville short sale?
Without the extension of the Mortgage Debt Relief Act prior to the end of the year, any homeowners who went through foreclosure or did a short sale may have to face a hefty tax bill at the end of the year. For example, if you owed $150,00o on your Knoxville home, but sold it for $100,000 in a short sale, the forgiven debt would be $50,000. This would mean you would receive 1099-C from your lender and may have to pay income taxes on the remaining $50,000.
It still remains to be seen whether or not Congress will finally agree on an extension of the Mortgage Debt Relief Act. If it is voted on by the end of the year, any homeowner that went through foreclosure or did a Knoxville short sale will not be required to pay income on the forgiven debt. To qualify, the home must be the primary residence, and can only be up to $1 million for those filing as an individual and $2 million for those filing jointly. While parties on both sides of the aisle have agreed the extension of the Act is necessary, they have not managed to come to an agreement yet. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Kristy, “I’m six months behind on my Knoxville mortgage. I had to relocate for work and I could not continue to keep paying my rent in Texas and my mortgage payment in Knoxville. Prior to moving, I met with a realtor and I owe about $40K more than my home would likely sell for, so I have opted to do a short sale. We finally have a few interested buyers, but I am nervous because my home is definitely in need of some work. In a Knoxville short sale, who is responsible for paying for repairs?”
In a Knoxville short sale, it is generally understood that the home is sold “as is.” This means that it is not expected that a seller make any repairs to the property and the buyer is aware that they are taking the property in its current condition.
In a Knoxville short sale, a seller is in a financial situation that makes paying their mortgage difficult or altogether impossible. This is why it is understood that a seller would not be responsible to make any repairs to the property. Further more, a seller making repairs to the property could raise some questions with the lender. They would question if a seller has money to make repairs, they may have money to keep paying their Knoxville mortgage. Read the rest of this entry »
If you’ve missed mortgage payments on your Knoxville home, you’re not alone. Many Knoxville homeowners are in a similar situation where they are underwater on their home. If you’re facing foreclosure on your Knoxville home, here are 3 steps to take if you’re behind on your Knoxville mortgage.
First, if you’re behind on your Knoxville mortgage, it can be helpful to seek professional advice from the very beginning. While it may be scary to contact your lender, the sooner you contact them the better. You may be eligible to modify your loan and make your Knoxville mortgage payments more bearable. You could also contact a housing counselor. They can help advise you on what options you may have to avoid foreclosure on your Knoxville home. Housing counselors are a free service through the U.S. Department of Housing and Urban Development. Read the rest of this entry »