Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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The Biggest Threat To A Successful Knoxville Short Sale

DangerKnoxville TN – The biggest threat to your short sale is a high appraisal. Banks consider short sales for economic reasons. A bank will approve a short sale only if they think they will net more money taking the short sale offer. To make sure they aren't selling the house for too little, they order an appraisal. Click here to discover how other sellers successfully did a short sale and avoided foreclosure. The problem is that most homes are selling for less than appraisal. In one example, a non short sale listing sold for 225k. However, the property could have appraised for 300k. That means the short sale lender would never have approved it. This is why your agent needs to make sure the appraisal is accurate. There is nothing unethical or illegal about doing this. Let me explain why. 80% of the loans handled by big mortgage companies are actually owned by an investor. These front companies (such as Wells Fargo, Bank of America, SunTrust, or Chase) are acting as a "servicer." The servicers save money by taking 60-90 days to consider a short sale offer, turning down files over one missing doc, and cutting staff. This is why short sale offers get turned down for no reason. However, if they can see that the house is valued at 145k and you're selling it for 140k, they'll accept the offer. Again, which is why your agent needs to make sure the appraisal is accurate. We have made it a practice with our sellers that the buyer of their home obtain appraisal from their lender and provide us with a copy of it.  The reason being if the lenders appraisal comes back high and our appraisal is closer to the selling price we then have 2 appraisals on the home. In most cases it helps us keep the value closer to the what we have sold the home for to our buyer. Tough to do it when the lender has an appraisal for one value and you have it sold for another. But with the second appraisal we have been successful at getting homes sold. If you are having trouble making your mortgage payments you do have options other than foreclosure. Take the time to understand your options. If you would like to talk about your situation feel free to give me a call at 865-696-9002 or email me [email protected]

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