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: Should I Stop Paying My Other Bills?

billsIn our Ask the Expert Section, we recently received a question from Mary, she asks, "I am in the process of doing a short sale on my Knoxville home. My hours were cut at work, which made it difficult for me to keep paying the mortgage on my Knoxville home. In addition, I've got quite a bit of credit card debt I've accrued during that time. I'm still struggling to pay some of my other bills, since I'm doing a short sale, should I stop paying my other bills?" Once you start doing a short sale on your Knoxville home, it can be tempting to stop paying other bills as well. While it is ultimately a decision that you have to make for yourself, it is important to understand the potential consequences of not paying other bills. Many sellers who are doing a short sale do not realize the potential consequences of not paying other bills. If you fail to make payments on things like credit cards, homeowner's association dues, or even things like child support, it is possible that those lien holders could put a lien on your property. While this may not seem to be a problem if you're doing a short sale on your Knoxville home, it can actually be a larger problem than you think. All liens on a property must be paid off before a short sale is complete, which is why it is important to pay as many of your bills as possible. In a majority of cases, lenders will not be willing to payoff other liens on a property, unless they are a second mortgage. Paying as many of your bills as possible will also minimize your credit damage in the end. For every payment you don't make, the damage to your credit builds up even more, making it harder to recover when the short sale is over. Do your best to keep making payments on other bills while doing a short sale to help minimize damage. Finally, it is also important to remember that a Knoxville short sale doesn't wipe out all debt. It will only wipe out the debt associated with the amount owed on the mortgage. 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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