Knoxville short sales are long, tedious transactions. After months of negotiating with a lender, there is nothing more disappointing than to find out that a short sale has been denied by a lender. Still, even after a denial, there are still things that can be done to combat a short sale denial.
Even though short sales are in a lender’s best interest, lenders can be fickle about approving short sales. There are many reasons why lenders will deny short sales, but here are the three most common reasons: the price, incomplete package, or the seller doesn’t qualify for a short sale.
Luckily, for each of these reasons, there are ways to prove your case to a lender, even after a short sale has been denied. An experience Knoxville short sale agent will know how to navigate the situation if you receive a short sale denial for any of these reasons. In this post, we’ll show you how each of these denial reasons can be disputed with your lender. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Jean, he asks, “I’m in a difficult situation. I owe more on my Knoxville home than it is worth and am struggling to make my mortgage payments. I’d like to do a short sale on my Knoxville home, but am afraid that I do not have the money to do one. Not only am I late on my payments, I’m late on my association dues and property taxes. If I opt to do a short sale, how much will it cost me and will my lender pay for anything?”
There are many people in a similar situation as you, which is why lender are willing to pick up certain costs. Lenders will be willing to pay for you closings costs, agent commissions, and past due property taxes. Lenders are willing to pay these fees because generally short sale bring in more profit for them than foreclosures do, which makes them want to avoid going through the costly foreclosure process. Read the rest of this entry »
Knoxville short sales are difficult transactions. They require a few months of hard work, follow up, and waiting. All of this hard work always comes down to one thing: the short sale approval letter.
Still, once a short sale approval letter is received, it’s important that you carefully read the terms and conditions of the approval. Here are 3 important things that should be included in the short sale approval letter. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Phil, he asks, “My wife and I are currently underwater on our Knoxville home by about $20K. We have a three bedroom home, but our family has grown enough that we need something bigger. We’re still current on our mortgage and all of our bills, which we’ve heard could hurt our chances at a short sale. We’ve talked about reaching into our retirement, but don’t want to reach into our hard earned money. My wife was out of work for awhile, so we weren’t saving as much. We’ve also considered doing a short sale. What is our best option on our Knoxville home?”
Phil, you’re in a very tough situation. There are a lot of people in a similar situation and it can be a hard decision to make. You’ll have to weigh the costs of whether or not you want to touch your retirement income. If you are considering doing a short sale on your Knoxville home, under the new regulations you are not required to be behind on your mortgage payments. Read the rest of this entry »
Knoxville short sales can be full of obstacles. Generally, there is not just one party that is the source of the problem. Uncooperative sellers, aloof agents, lender bureaucracy, and flakey buyers can all cause problems. So, what are the potential obstacles? And, is it possible for all (or most) short sale problems to be avoided?
Short sales are messy, complicated transactions. The rules and regulations are constantly changing and with so many parties involved, it can be hard for them to be completely smooth. However, by hiring an experienced short sale agent, you can hopefully avoid some major obstacles before they even happen. Here are a few typical obstacles that Knoxville short sale encounter that tend to be out of the ordinary realm of short sale problems. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Darlene, she asks, “My husband and I have been working on a short sale for a few months now. We’ve slowly gotten our lives back on track. We’ve both gotten new jobs and have a plan in place for once the sale is completed. Our contract expires in a month, but our agent says it could be longer than that. Who determines the close date for short sales? Our buyer is wanting to close by the contract date.”
In traditional sales, the contract date is generally what all parties are required to abide by, unless there is some kind of issue. Knoxville short sales are a whole different situation. Short sales truly depend on when the seller’s lender is ready for the short sale to close. For both the buyer, seller, and agents, it can be hard to have the fate of the sale so dependent on the seller’s lender. Unfortunately, that is how short sales are. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Graham, he asks, “I’ve been through a difficult time. I lost my job and racked up a lot of debt during the time I was unemployed. I’m over a year behind on mortgage payments and am considering doing a short sale on my Knoxville home. My dad said he would be willing to buy it, so that I could rent it out. Do you think my lender would allow that to happen?”
Unfortunately, Graham, out of my experience with Knoxville short sales, I think that it would be unlikely that your lender would allow this to happen. When a lender approves a short sale, they are already accepting a loss, so they like to ensure that the seller is not benefiting in anyway from the sale. Read the rest of this entry »
If you’re a Knoxville homeowner facing foreclosure, you may be considering your options to avoid foreclosure. In order to give yourself the best chance to avoid foreclosure, it is essential that you find yourself a Knoxville short sale agent with experience. Here is how to find the right Knoxville short sale agent to you.
First, it is important to find an agent with experience closing Knoxville short sales. While any agent can do a Knoxville short sale, they can be tricky transactions which is why it is helpful to have an agent with experience. They will be able to explain to you how short sales work, what options you may have to avoid foreclosure, short sale requirements, and possible outcomes. They will also be able to successfully negotiate a short sale with your lender, keeping you informed along they way. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Anne, she asks, “I bought my Knoxville home back when it was worth significantly more. A few years ago my son had some medical bills, so it made it difficult for me to stay current on my mortgage. I want to do a short sale on my Knoxville home, but am afraid it won’t work out. What happens if my Knoxville short sale isn’t successful?”
Anne, I’m so sorry to here about your situation. To answer your question, you have nothing to lose if you try a short sale. When you complete a short sale, your lender will take care of paying all of the agent commissions, closings costs, past due property taxes, among other things. If the short sale is not successful, my team and I require nothing for our services unless the sale closes. In addition, we’d help you pursue whatever other options you may have to avoid foreclosure on your Knoxville home. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Nina, she asks, “I lost my Knoxville home to foreclosure last year after losing my job. I’ve started work at a new job and am making decent money again. I have a family, which makes it difficult to find a suitable rental. I would like to buy a Knoxville home again, but don’t know when that will be possible. After foreclosure, how soon can I buy a Knoxville home again?”
Nina, I’m very sorry to hear about your situation. The standard wait time for homeowners that have gone through foreclosure is seven years for all Fannie Mae loans. Since a majority of loans are eventually sold to Fannie Mae, the 7 year wait period is standard for many lenders. In some cases, where hardship can be proven, homeowners are able to buy a Knoxville home again within three years. In order to be approved for a 3 year wait, a homeowners would need to show extenuating circumstances that made paying their mortgage impossible. Read the rest of this entry »