Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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The Knoxville Short Sale Process From Beginning To End

mental-strength-checklistFor many Knoxville homeowners facing foreclosure on their Knoxville home, one of the scariest parts of the whole situation is the unknown of what may happen in the future. A Knoxville short sale is a common way to avoid foreclosure, but the process itself can be a bit of a mystery to most homeowners. Here is a breakdown on the process from beginning to end. The short sale process can start months before a Knoxville homeowner even decides to do a short sale. The process starts after a few missed mortgage payments, when the homeowner finds themselves in a situation they can't get out of. At that point, a Knoxville homeowner must take action to avoid foreclosure, otherwise foreclosure will be inevitable. After a Knoxville homeowner has reached the point where foreclosure is inevitable, a homeowner usually will meet with one or two short sale agents to find more about the process. At that point, the lender is contacted by the short sale agent to notify the lender that the homeowner would like to pursue a short sale. At that time as well, the agent would submit an authorization signed by the seller that will allow the agent to work with the lender on behalf of the seller. Next, all of the short sale paperwork is submitted to the lender. The paperwork includes a wide range of information including financial statements, a hardship letter, a settlement statement showing the payoff to the lender, among other things. Depending on the situation, if the Knoxville home has an offer on it, the purchase contact would be submitted at this point as well. Once a purchase contract is submitted to the lender, a broker price opinion (BPO) will be ordered on the home. The purpose of a BPO is to help determine the market value of the home to see if the sales price is reasonable. Unfortunately, not all BPOs are accurate, but there are ways to counteract an inaccurate BPO. At this point, the lender begins to review the file, which is when the waiting process begins. During this time, the lender may request additional information from the Knoxville homeowner. Unfortunately, there is not set timeline on how long this review can take, it is just a waiting game. Finally, after some waiting, the lender will give there decision on the Knoxville short sale. If approval is given, usually closing must take place within 30 days. If the short sale is denied, the homeowner can pursue other options to avoid foreclosure or try a short sale again if they feel like the decision wasn't right. Are you facing foreclosure on your Knoxville home? If there is anyway my team and I can assist you, please let us know. We’ve helped many Knoxville homeowners avoid foreclosure on their Knoxville homes, and all of our services are done at absolutely no cost to you. You can contact me at 865-696-9002 or via email at [email protected].

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