In our Ask the Expert Section, we recently received a question from Ashley, she asks, “It’s been a little difficult for me to make my mortgage payments on my Knoxville home recently. I’m self-employed and recently haven’t been making as much money as I normally do. On top of that, I just had to pay to do some major maintenance on the basement of my Knoxville home. I recently missed a payment on my Knoxville home and am worried I will keep missing payments. Is it time to consider a short sale on my Knoxville home?”
In the state of Tennessee, the foreclosure process can happen pretty quickly. Technically, after just one missed payment, your lender has the right to foreclose on your Knoxville home. With that being said, that is not something that happens very rarely, if at all. A majority of Knoxville homeowners that go through foreclosure miss payments for at least a year or more.
As far as if a Knoxville short sale is a good option for you, that is a largely personal question. There are a few things you’ll want to consider to determine whether or not a Knoxville short sale is right for your. Do you owe more on your home than it is worth? Do you want to sell you Knoxville home? Do you want to explore you Knoxville alternatives to avoid foreclosure? If you modified you loan, could you continue making your payments? With just one missed payment, it is important to determine early on a plan. Read the rest of this entry »
With any real estate transaction, the devil is in the details. This is particularly true for Knoxville short sale transactions. After months of negotiations, any unexpected and seemingly minute detail can cause a huge issue or even cause the sale to fall apart all together. Here are a few examples of why the devil is in the details when it comes to Knoxville short sale transactions.
One large detail that can cause a major hiccup with Knoxville short sales is other liens against the property. While a homeowner may only have one or two mortgages on the property, there still could be other liens that they are unaware of or fail to disclose. A majority of Knoxville homeowners don’t understand that failing to pay their credit card could result in a judgement filed against them that attaches to the property. This is exactly why prior to starting a short sale a title search is done on the property. This will reveal any other potential liens that are against the property, thus saving the sale from a last minute hiccup. Read the rest of this entry »
In our Ask the Expert Section, we received a question from Alice, she asks, “I’m behind on the mortgage payments on my Knoxville home. I want to do a short sale, but I’m afraid of what will happen if it doesn’t work out. After being out of work for over a year, I’m already financially stretched. If the Knoxville short sale fails, how much will I owe?”
Knoxville short sales are done at absolutely not cost to you. Regardless of whether or not a Knoxville short sale is successful, you should never be required to pay any money to do a short sale. If any party asks for an upfront fee, it should immediately raise a red flag, as it is a common sign of many Knoxville short sale scams.
In a Knoxville short sale, the short sale lender takes care of paying any real estate commissions, closing costs, and past due property taxes. Until the sale is complete, no party involved in the transaction gets paid. Read the rest of this entry »
For Knoxville homeowners that have been through foreclosure or done a short sale, it can sometimes be difficult to imagine owning another home. Whether is was job loss or some other financial difficulty, homeowners that have gone through foreclosure or done a short sale can easily sour on the idea of owning a home after being put through the ringer by a lender. If you’re gone through a Knoxville short sale or foreclosure, here is why you shouldn’t let it sour your dreams of owning a home.
First, it is important to remember that you are not alone. Many Knoxville homeowners went through foreclosure or did a short sale just like you. Nationally, according to data from Black Knight Financial Services, about 7.2 million homes in American have gone through a short sale or foreclosure. At a time where unemployment was high and homeowners were upside down on their homes, it is not a shock at the amount of homeowners that did a Knoxville short sale or went through foreclosure. Don’t let this hold you back from owning another Knoxville home. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Jake, he asks, “I’ve been struggling to keep making payments on my Knoxville home. I’m at the point now where I’m at the point of no return. I feel like doing a short sale is giving up, but I’m not sure how I would rebound from my current situation. I’ve tried a few things and nothing has worked. Should I do a short sale or should I try to save my Knoxville home?”
Jake, I’m very sorry to hear about your current situation. It’s a very tough decision to make, whether to do short sale or try to find another solution to stay in your Knoxville home. Unfortunately, there is no clear cut solution, as the situation is largely personal and you have to determine the best solution for you. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Irina, she asks, “I’ve been unable to make the mortgage payments on my Knoxville home. My son became very ill a few years ago and it made it difficult for me to work, since I’m self-employed. The medical bills were piling up and it became impossible to stay current on my mortgages. I have two mortgages on my home and owe about $30K more than what it will sell for. Is a Knoxville short sale going to be more difficult since I have two mortgages?”
It is very possible to negotiate a Knoxville short sale if there are two mortgages on a property. Two mortgages can just make a short sale situation a little more complicated. Some lenders are just a little more complicated when it comes to negotiating on a second mortgage.
Luckily, there are a few short sale programs which offer incentives to second lien holders. For example, Freddie Mac short sales are willing to offer up to $6,000 to subordinate lien holders, in exchange for releasing the lien and not pursuing the borrower for a deficiency judgment. Fannie Mae short sales also offer up to $6,000 to subordinate lien holders for lien holder to release the lien and waive their right to pursue the homeowner for a deficiency judgment. Read the rest of this entry »
Knoxville short sales take great deal of time and patience to complete. All the paper work, phone calls, and effort is put forth for one common goal: the short sale approval letter. So, what exactly is included in a Knoxville short sale approval letter? And, when it is received, what does it mean for you as the homeowner?
The short sale approval letter spells out exactly what the lender requires from the seller in order for the short sale to be successfully completed. Generally, they lay out the following terms: an acceptable sales prices, the max commissions allowed, maximum closing costs, minimum proceeds to the seller (if any), and the close date (or when the sale must close by).
In the case of some short sales, it will also include a release of future liabilities, that is that your lender is waving the right to pursue you for a deficiency judgement. If the release of liability is not address, then your lender could still potentially pursue you for what is owed. Read the rest of this entry »
Knoxville short sales can be tricky transactions. As a seller, it is extremely important to be upfront with your realtor and lender throughout the short sale process. Any little lie or forgotten detail has the potential to cause a big hiccup in the whole short sale process. Here is why it is so important to be honest when doing a Knoxville short sale.
First, it is important to understand the scrutiny that Knoxville short sales are put under before they are approved. Bank statements, pay stubs, among other things are examined throughout the process. It is just important to understand that if you’re hiding anything, it will most likely be found out, which is why it is just important to be upfront about it
Being honest and upfront with your realtor from the beginning will only help your Knoxville short sale to succeed. Your realtor is there to work with your lender to get your Knoxville short sale approved. Any pertinent information that you are able to provide them will only help. The more they know, they better they will be able to assist you. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Dylan, he asks, “I’m currently in a difficult situation. I’ve been struggling to make the mortgage payments on my Knoxville home. At this point, I’m either going to do a short sale or end up in foreclosure. With the Mortgage Debt Forgiveness Act not yet extended, I’m unsure if doing a short sale is even worth the effort. Is foreclosure a better option now?”
It can be an extremely tough decision to decide between a Knoxville short sale and going through foreclosure. Unfortunately, there is no easy answer to that question. It is largely personal and you’ll need to decide what option is best for you. If you have questions about the possible tax implications, it is always best to talk to a tax professional or attorney.
With that being said, I wouldn’t necessarily base your decision on what to do solely on what happens with the Mortgage Debt Forgiveness Act. It is hard to say whether or not it will be passed this year to retroactively put the law back into effect, meaning that anyone who has to do a short sale will not have to pay taxes on the income. Read the rest of this entry »
Last week, Fannie Mae announced they will be implementing a new system to work directly with short sale agents. This is great news for Knoxville short sales because it puts agents in direct communication with Fannie Mae to hopefully help alleviate some of the problems Knoxville short sales run into.
In the past, Knoxville short sale agents would negotiate the short sale with the loan servicer. Then, the loan servicer would work with Fannie Mae to get approval, oftentimes being a unproductive middle man. The system of negotiating short sales through a servicer would often cause Knoxville short sales to stall unnecessarily, due to pricing disputes or delays caused by the servicer.
In February 2013, Fannie Mae launched a portal for agents to communicate directly with them when they ran into problems with a loan servicer. Through the portal, agents were able to escalate a short sale file if they felt that that a short sale had stalled unnecessarily. Agents were also able to log onto the portal prior to putting a Knoxville home on the market to get a recommended list price for the short sale.
In the coming months, Fannie Mae has announced that the portal will take things a step further, and allow agent Read the rest of this entry »