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 »
In our Ask the Expert Section, we recently received a question from Jerry, he asks, “I’m underwater on my Knoxville home. I’ve continued to make payments, but have started to dip into my savings. At this point, I cannot sell my home for what it is worth and have begun to consider my options. I’ve thought about doing a short sale on my Knoxville home, but I’ve heard you need to have missed payments. Should I strategically default on my Knoxville home?”
Many Knoxville homeowners facing foreclosure face the same debate of whether or not they should stop making payments when doing a short sale. In that situation, it is a decision that is completing up to you. I would advise you to talk to a lawyer or financial adviser about the potential consequences. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Todd, he asks, “I want to do a short sale on my Knoxville home, but am afraid my lender will not approve the sale. In addition to my mortgage, I also have a judgement filed against me from some medical bills that has attached to my property. Can I still do a short sale on my Knoxville home if there are other liens on the property?”
IRS Tax liens, homeowner’s association liens, and judgements that attach to a property are all things that can make a Knoxville short sales difficult. The main reason lenders are not willing to payoff other non-mortgage related liens is due to the fact they’re already selling the home at a loss. Other liens can take a cut out of the proceeds, which is why most lenders will not approve paying of those liens with the short sale proceeds. With that being said, every lender is different and it can always be difficult to 100% say what they will and will not do.
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There is no true rhyme or reason why some Knoxville short sale get approved and others don’t. Still, there are certain things that can hurt your short sale odds from the very beginning. Here are 3 things that can hurt your odds of short sale success, and how to avoid them.
One thing that can hurt your Knoxville short sale success is having your home set at the wrong price. The price must be “right” for all of the following parties: the lender, the seller, and the buyer. If the price is too high, buyers won’t want to buy it. If the price is too low, lenders will not want to accept an offer. Hire an experienced agent who will help you set the right price for you Knoxville home, and who knows how to prove the price to your lender. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Jimmy, he asks, “I’m in a tough situation. My wife stayed home after having our first child, and shortly after that, I had my wages cut. I’ve been able to keep paying my mortgage, but things have been tight. Our child has had some health problems which have caused us to have some high medical bills as well. I’m afraid of losing our home to foreclosure, and have thought about doing a short sale on our Knoxville home. I’ve read that lenders require “legitimate hardship” to approve a short sale. What exactly do lenders define hardship as?”
Lenders do not take approving Knoxville short sales lightly. If they are going to accept less than is owed on a home, they want to see that a short sale is last resort to avoid foreclosure. This is why you will hear lenders require “legitimate hardship” to approve a Knoxville short sale.
Lenders are willing to accept a wide-variety of reasons for hardship. Acceptable forms of hardship include: job loss, loss of income, illness, disability, relocation, military service, divorce, incarceration, increased monthly mortgage payments (ARM or interest only mortgages), or an increase in your monthly bills (from medical bills, etc.). Read the rest of this entry »
For any Knoxville homeowner that has gone through foreclosure or completed a short sale, dreams of owning a home again can seem altogether impossible.
Fortunately, buying a Knoxville home after foreclosure or completing a short sale may not be as difficult as you think. Here are 3 tips for buying a Knoxville home after foreclosure or a short sale. Read the rest of this entry »
This is great news for Knoxville homeowners who are facing foreclosure on their Knoxville home or who are having trouble making mortgage payments on their Knoxville home. Read on to find out more about these programs. Read the rest of this entry »