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: How Much Of A Loss Will My Bank Take?

knoxvilleshortsalequestionsIn our Ask the Expert Section, we recently received a question from Claire, she asks, "My husband and I bought a luxury Knoxville home back when the market was hot in 2007. Our mortgage terms where a little exotic, and our interest rate eventually rose it a ridiculous rate. The interest rate combined with some other financial difficulties have made it very difficult to continue paying our mortgage on our Knoxville home. After meeting with a Realtor about selling our Knoxville home, we know that our home would not sell for what we owe and we'd still owe about $100K more on our how. If we do a short sale, how much of a loss will my bank be willing to take?" With Knoxville short sales, there is no tried and true formula as to what banks will and won't accept. If there were, short sales would be a much easier, predictable process. The good news is, though, lenders will be willing to consider a lot of different situations when it comes to short sales. In my Knoxville short sale experience, I've seen many different scenarios where short sales have been approved. I've seen lenders approve short sales with a $20,000 loss and I've seen lenders accept a loss of $100,000. It really just all depends about the situation. If you are able to prove that you've gone through hardship and that paying your mortgage is no longer possible, you have a pretty solid chance at short sale approval. In addition, you'll need to provide the proper data that your home could not sell for what you owe on it.  An experienced Realtor will be able to help your provide the necessary data for this. Claire, as far as your situation goes, a Knoxville short sale may be a good option for you to consider. A short sale gives you the chance to walk away debt free from your Knoxville home. A short sale will also due less damage to your credit than a foreclosure. Just keep in mind, the Mortgage Debt Forgiveness Act has not yet been renewed, so you will be required to pay income taxes on the forgiven debt if it is not renewed sometime this year. Are you underwater on your Knoxville home? Do you want to hear what options you have 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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