Knoxville Short Sale Question: What If I Have Two Mortgages?

knoxvilleshortsalewithtwomortgagesIn our Ask the Expert Section, we recently received the following question from Nicki, she asks, "I bought my Knoxville home a few years ago. Shortly after, I was out of job for 9 months. For awhile, I was able to make my mortgage payment by taking money from my savings account. Eventually, though, my savings got to low to continue paying my mortgage payment. I'm afraid that foreclosure is inevitable. I owe much more than my home is worth and have two mortgages on my home. Is it possible to do a short sale on my Knoxville home if I have two mortgages?" Nicki, you ask a very common question about Knoxville short sales. It is possible to do a Knoxville short sale if there are two mortgages on the property.  This is not an uncommon situation, either. In many short sale cases, it is not uncommon for there to be multiple lien, including: HOA liens, IRS Liens, mechanic's liens or multiple mortgages. Having multiple liens on a property does not make it impossible to negotiation a short sale, however, it does make things more tricky and can make the process a little longer. If there are multiple liens on the property, it is necessary to get both lien holders to agree on what they will accept as payoffs. Getting both parties to agree on payoffs is what can cause the negotiation process to take longer than other short sales. Hopefully, though, under the new Federal Housing Finance Agency's new short sale guidelines, negotiating short sale with multiple mortgages will get easier starting November 1. Under the new guidelines, Freddie Mac and Fannie Mae will offer up to $6,000 to second mortgage companies to help expedite the short sale process. Unfortunately, the FHFA new guidelines only applies to loans owned by Freddie Mac and Fannie Mae. Are you a Knoxville homeowner who is facing foreclosure? Are you wanting to know what options you have to avoid foreclosure on your Knoxville home? If so, do not hesitate to give me a call at 865-696-9002 or send an email to [email protected]. My team and I are dedicated to helping Knoxville homeowners avoid foreclosure and all of our services are done at no cost to you.

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