Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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Knoxville Short Sale Question: Do I Qualify For A Short Sale?

knoxvilleshortsalequestionsIn our Ask the Expert Section, we recently received the following question from Dwight, "I lost my job six months ago and recently found a new job. Unfortunately, I making about 35% less than I was. Every month I take money out of my savings to pay my bills. I owe about $50,000 more on my house than it is worth. Can I still qualify to do a short sale on my Knoxville home?" Based on the information you've given, it sounds like you may qualify to do a short sale on your Knoxville home. In order for a lender to approve a short sale on your Knoxville home, they will want to see that since you took the loan, you've undergone some sort of hardship since then, which makes paying your monthly mortgage difficult. There are many different situations which would constitute hardship, including:
  • Unemployment.
  • Reduced income. Furloughs, a new job, a partner’s loss of a job, or a pay cut are examples.
  • Illness or medical emergency.
  • A Job transfer. (voluntary or involuntary)
  • Divorce, separation or marital difficulties.
  • Exotic mortgage terms (an adjustable-rate loan that adjusts and you cannot afford the new payment.)
  • Military service.
  • Death in the family.
  • Incarceration.
  • Increased expenses and excessive debt.
  • Unexpected repairs or home maintenance.
Writing a good hardship is one of the most important parts of a successful short sale. A good hardship letter will show your lender three things: 1. How you got into your present situation – If, for example, you have missed mortgage payments state what caused this to happen. Was it due to job loss? Medical or some kind of family emergency? You need to be sure that the dates of the missed payments correspond to the circumstance that caused you to not make your mortgage payments. Use dates to references the times in which hardships happened to you. 2. What you have done to try to get out this situation – State the activities that you have undertaken to try and change your current situation. 3. Why this situation is permanent and nothing you can do will change it. If you are having trouble making your mortgage payments and would like to discuss your options, please give me a call at 865-696-9002.  As a CDPE, I specialize is helping Knoxville homeowners avoid foreclosure. My team and I spend a great deal of time keeping up with the many changes going on in the market and we are glad to help you. Please do no hesitate to contact me [email protected] and we can set up a time to discuss your options. Also, be sure to check out my resource page.

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