Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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Fannie Mae Extends Wait Time To Buy Home After Knoxville Short Sale

KnoxvilleShortSaleGuidelinesChangingStarting August 16th, Fannie Mae will impose longer wait times for those who have completed a short sale on their Knoxville home.  In an announcement made by Fannie Mae made in July, Fannie Mae outlined new wait time requirements homeowners who  completing  short sale. So, what does this mean for those who have completed a Knoxville shore sale? In the past, Fannie Mae world allow homeowners to buy a new Knoxville home within 2 years after completing a Knoxville short sale or deed-in-lieu of foreclosure. Any homeowner with a 20% down payments and a credit score of at least 680 would be eligible to buy a home within two years. Unfortunately, as of August 16th that is all changing. For any Knoxville homeowners who completing a short sale or deed-in-lieu of foreclosure, after August 16th, they will face a 4 year wait time to buy another Knoxville home with a conventional loan. Unfortunately, this tightening of underwriting standards is a bit of a setback for any homeowner who has done a pre-foreclosure sale. The one good piece of news is that it is still possible to prove "extenuating circumstances" in some cases by providing significant financial documentation.  A homeowners can provide "extenuating circumstances" through pay stubs, bank statements, and tax returns. They would just need to show that they were in an impossible situation where a Knoxville short sale was their only alternative to avoid foreclosure. Finally, just keep in mind, that FHA's Back To Work Program, allows homeowners to who have been through foreclosure or done a Knoxville short sale to buy a home in as little as a year. 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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