In our Ask the Expert Section, we recently received a question from Kim, "I feel like I've exhausted all my options to avoid foreclosure on my Knoxville home. I first tried a loan modification, then a short sale, all of which have been denied. I've heard how bad a foreclosure can be for my credit it. Do I have any other options since my loan mod and short sale were denied?" Kim, you still have options. It can be extremely frustrating to go through all the work and effort to do a short sale, only to have it denied. Some short sales get approved, while others don't, and sometimes there seems like there is no rhyme or reason in the logic. You may want to consider talking to your lender about doing a deed-in-lieu of foreclosure. A deed-in-lieu of foreclosure is where a Knoxville homeowner deeds their home back to the lender, who will in return release the homeowner from their mortgage. A deed-in-lieu of foreclosure will not do as much damage to your credit as a short sale. Fannie Mae actually recently announced some new deed-in-lieu of foreclosure guidelines, that went into effect on March 1st. Under the new guidelines, homeowners have the option to vacate their home immediately, stay rent free for three months, or stay for twelve months while paying market rent. In order to be eligible, Knoxville homeowners must be at least 90 days behind on mortgage payments and the homeowner must have experienced some kind of hardship, which must be well documented, through financial statements and monthly bills. Homeowners who are current on their mortgage may qualify as well if there has been a death experienced in the family or if there has been an illness in the family. Active military service members will qualify as well if they have experienced a permanent change of station. In certain cases, Fannie Mae can request that the borrower make cash contributions for the difference of what is owed on the home. Fannie Mae outlines in what situations they may require homeowners to make cash contributions and the equation they determine if that is necessary. To read more about those requirements, be sure to check out Fannie Mae’s Servicing Guide Outline. Are you thinking are you a Knoxville homeowner facing foreclosure? If so, please do not hesitate to give my team a call at 865-696-9002 or send an email to [email protected]. We specialize in helping Knoxville homeowners avoid foreclosure and helping them understand their options. Foreclosure isn’t the only option. Give us a call today to hear what you’re options are and what Knoxville Home Team can do for you.