In our Ask the Expert Section, we recently received a question from Ted, he asks, “I’m doing a short sale on my Knoxville home. I’m concerned that my Knoxville home won’t sell for the price I need it to sell for. It is in need of a new roof and needs some other cosmetic works. How much will I have to sell my home worth in order to walk away from the situation debt free?”
Knoxville short sales can be fickle transactions. It can be very hard to say from the very beginning that your Knoxville home must sell for X in order for your short sale to be approved. It is through months of negotiation that an approved price is agreed upon by all parties involved in the short sale transaction. Read the rest of this entry »
Starting August 16th, Fannie Mae will impose longer wait times for those who have completed a short sale on their Knoxville home. In an announcement made by Fannie Mae made in July, Fannie Mae outlined new wait time requirements homeowners who completing short sale. So, what does this mean for those who have completed a Knoxville shore sale?
In the past, Fannie Mae world allow homeowners to buy a new Knoxville home within 2 years after completing a Knoxville short sale or deed-in-lieu of foreclosure. Any homeowner with a 20% down payments and a credit score of at least 680 would be eligible to buy a home within two years. Unfortunately, as of August 16th that is all changing. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Mary, she asks, “I am in the process of doing a short sale on my Knoxville home. My hours were cut at work, which made it difficult for me to keep paying the mortgage on my Knoxville home. In addition, I’ve got quite a bit of credit card debt I’ve accrued during that time. I’m still struggling to pay some of my other bills, since I’m doing a short sale, should I stop paying my other bills?”
Once you start doing a short sale on your Knoxville home, it can be tempting to stop paying other bills as well. While it is ultimately a decision that you have to make for yourself, it is important to understand the potential consequences of not paying other bills.
Many sellers who are doing a short sale do not realize the potential consequences of not paying other bills. If you fail to make payments on things like credit cards, homeowner’s association dues, or even things like child support, it is possible that those lien holders could put a lien on your property. While this may not seem to be a problem if you’re doing a short sale on your Knoxville home, it can actually be a larger problem than you think. All liens on a property must be paid off before a short sale is complete, which is why it is important to pay as many of your bills as possible. In a majority of cases, lenders will not be willing to payoff other liens on a property, unless they are a second mortgage. Read the rest of this entry »
The Knoxville short sale process is always changing. Rules and regulations for short sales vary from lender to lender and program to program. Another large lender, Bank of America, announced changes to their short sale program this past July. So, what does this mean for Knoxville short sales with Bank of America loans? Read on to find out more.
From the beginning of any Knoxville short sale with a Bank of America loan, the homeowner will receive a short sale initiation package once a short sale has been initiated. Included in the package will be one very important form, the Buyer Election form. Before the short sale process can begin, the buyer must sign and return the Buyer Election for BOA to continue with the Knoxville short sale.
This is one significant change to Knoxville short sales with BOA loans. In the past, the short sale process could move forward without this form, but now, under these new short sale changes, no Knoxville short sale will proceed without this form being signed. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Phoebe, she asks, “I was relocated a little over a year ago. I tried to sell my Knoxville home, unfortunately, I owe way more on my home that it is worth. I eventually stopped making payments because it was too difficult to pay living expenses in two different cities. I’m in the process of doing a short sale on my Knoxville home. Do I still need to worry about maintaining the home and keeping utilities on?”
As a Knoxville homeowner facing foreclosure, there are many difficult decisions to make. The first of which being whether or not a Knoxville short sale is right for you. It can be very difficult to decide what to do when you’re financially strained and upside down on your mortgage.
As far as the maintenance on your Knoxville home, it is important to keep in mind that you’re still in process of selling your Knoxville home. Even though your home is being sold as a short sale, it is still important to keep up with any of the maintenance that you are able to. Things like maintaining the yard or mowing the grass can go a long way. While this may not be possible to do sine you live out of town, it is important to do what you can. Read the rest of this entry »
In our Ask the Expert Section, we recently received a question from Brandon, he asks, “I bought my Knoxville home 7 years ago. I was able to get approved for more than I probably should have been. For awhile, it wasn’t difficult to pay my mortgage payment, but after my rate increased things became more difficult. My wife and I just had our first kid, so she stopped working. After this and becoming a one income household, it became difficult to pay my mortgage payment on my Knoxville home. We met with a realtor about selling our Knoxville home last year and we owe about $55,000 more than it would sell for. I want do do a short sale on my Knoxville home, but am afraid I’m too late with home prices rising. Are Knoxville short sales a thing of the past?”
Brandon, I’m sorry to hear about your situation. Luckily, Knoxville short sales are still very much a part of the Knoxville real estate landscape. Short sales may not be quiet as prevalent as they were a few years ago, but it is still very much possible to avoid foreclosure with a Knoxville short sale. Read the rest of this entry »
Every Knoxville short sale is a little bit different. Every lender can be a little bit different on their short sale requirements and why they approve or deny a Knoxville short sale. There are, however, a few common reason why lenders reject a short sale. Read on below to find out more.
One major reason that short sales fail is due to the fact that a file doesn’t meet the short sale guidelines. The reason that a file may fail to meet short sale guidelines can vary. A few common reasons include: a homeowner doesn’t have well documented hardship, a homeowner has too many cash reserves, or it appears that a homeowner could afford to make payments. Read the rest of this entry »
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 »