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: Is It Harder With Two Mortgages?

knoxvilleshortsalewithtwomortgagesIn our Ask the Expert Section, we recently received a question from Irina, she asks, "I've been unable to make the mortgage payments on my Knoxville home. My¬† son became very ill a few years ago and it made it difficult for me to work, since I'm self-employed. The medical bills were piling up and it became impossible to stay current on my mortgages. I have two mortgages on my home and owe about $30K more than what it will sell for. Is a Knoxville short sale going to be more difficult since I have two mortgages?" It is very possible to negotiate a Knoxville short sale if there are two mortgages on a property. Two mortgages can just make a short sale situation a little more complicated. Some lenders are just a little more complicated when it comes to negotiating on a second mortgage. Luckily, there are a few short sale programs which offer incentives to second lien holders. For example, Freddie Mac short sales are willing to offer up to $6,000 to subordinate lien holders, in exchange for releasing the lien and not pursuing the borrower for a deficiency judgment. Fannie Mae short sales also offer up to $6,000 to subordinate lien holders for lien holder to release the lien and waive their right to pursue the homeowner for a deficiency judgment. An experienced Knoxville short sale agent will be able to handle a situation where there are two mortgages on the property. It takes a little more work and dedication, but it is very possible to have a successful short sale when there are two mortgages. Finally, it also means there is more paperwork for the seller. It is extremely important that you, as a seller, be sure to keep up with it. Lenders require financial paperwork stay updated, so be sure to get it to your lender and realtor in a timely manner. Are you facing foreclosure on your Knoxville home? Please let me know if there is anyway my team and I can help you, give us a call today at 865-696-9002 or via email at [email protected]. We've helped countless homeowners in Knoxville avoid foreclosure on their homes. All of our services are done at absolutely no cost to you.

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