Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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Avoid Foreclosure Knoxville – Is A Short Sale The Only Option?

knoxvilleshortsalewithtwomortgagesFor Knoxville homeowners facing foreclosure, homeowners have a few different options to avoid foreclosure on their Knoxville home. A short sale is a common way for homeowners to avoid foreclosure; however, it is not the only option to avoid foreclosure. So, what other options to homeowners have to avoid foreclosure on their Knoxville home? One option a Knoxville homeowner can pursue is a loan modification. In the case of a loan modification, it is simply the terms of the loan that change. For instance, if a homeowner has an adjustable rate mortgage that started at a low rate and increased to a high rate which makes it difficult for the homeowner to make payments, the modification would lower the rate making payment possible. Earlier this year, Fannie Mae and Freddie Mac announced a streamlined modification process. Another option Knoxville homeowners have to avoid foreclosure is to refinance.  With the help of the Homeowner's Affordable Refinance Program, homeowners can refinance the terms of the loan to help make their mortgage payment more affordable. In order to qualify for the HARP program, Knoxville homeowners must meet a few requirements. First, the loan must be owned by Freddie Mac or Fannie Mae. Also, the loan must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. Also, the loan cannot previously be refinanced through HARP, unless it was a Fannie Mae loan that was refinanced between March – May 2009. In addition, the loan-to-value (LTV) ratio must be greater than 80%. Finally, the borrower must be current on their mortgage at the time of refinance and for the 12 months prior. Finally, if a homeowner has the money to become current on their mortgage, they have the option to do a forbearance agreement. In a forbearance agreement, a seller comes up with a payment plan with the lender to become current on their mortgage again. Over a certain period of time determined by the lender (usually 6 to 12 months), the homeowner agrees to make increased payments on their home to become current on their mortgage again. A forbearance agreement can be helpful to Knoxville homeowners who experienced temporary hardship and now have sufficient funds to become current on their loan. Are you facing foreclosure on your Knoxville home? Do you want to hear your options to avoid 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’ve helped countless Knoxville homeowners avoid foreclosure. Give us a call today for a free consultation.

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