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: Are Short Sales A Thing Of The Past?

question markIn our Ask the Expert Section, we recently received a question from Brandon, he asks, "I bought my Knoxville home 7 years ago. I was able to get approved for more than I probably should have been. For awhile, it wasn't difficult to pay my mortgage payment, but after my rate increased things became more difficult. My wife and I just had our first kid, so she stopped working. After this and becoming a one income household, it became difficult to pay my mortgage payment on my Knoxville home. We met with a realtor about selling our Knoxville home last year and we owe about $55,000 more than it would sell for. I want do do a short sale on my Knoxville home, but am afraid I'm too late with home prices rising. Are Knoxville short sales a thing of the past?" Brandon, I'm sorry to hear about your situation. Luckily, Knoxville short sales are still very much a part of the Knoxville real estate landscape. Short sales may not be quiet as prevalent as they were a few years ago, but it is still very much possible to avoid foreclosure with a Knoxville short sale. We have recently seen a decline in Knoxville short sales for a few reasons. One being that Knoxville home prices have risen a little bit. In addition, some Knoxville homeowners have opted not to pursue a short sale due to the fact that the Mortgage Debt Forgiveness Act has not yet been extended. This means that any debt that is forgiven is considered income, therefore a homeowner that completes a short sale could be responsible for paying income tax on the forgiven debt. Just keep in mind, if you go through foreclosure, you could be responsible for paying taxes on the forgiven debt as well. If you have questions or concerns about this, be sure to talk to a tax professional. If you owe more on your Knoxville home than it is worth, you have a few different options to avoid foreclosure on your Knoxville home. You can try to modify your loan to make payments for bearable or you can try to refinance as well. You can also consider completing a Knoxville short sale. It will allow you to stay in your Knoxville home until the sale is complete and do less damage to your credit. 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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