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: Can Any Property Be Short Saled?

226ASP6179944780In our Ask the Expert Section, we recently received a question from Danny, he asks, "I own quite a few pieces of investment property in Knoxville. I bought them back when the market was hot. I'd been holding on to them in hopes the market would turn and I could sell them for what I owe. But, at this point I'm so upside down on a few of them, I'm not sure what to do. I can't find tenants to cover the rent and I have two kids on college. I'm paying my own mortgage, but can't keep paying on these homes. Is it possible to do a short sale on investment property?"  Danny, it is possible to do a short sale on investment property. Lenders are willing to consider short sales in many different scenarios if a homeowner is able to provide the necessary documentation to prove they've gone through financial hardship. In recent years, lenders have seen the appeal of completing short sales because they generally get better sales prices and avoid the costly foreclosure process. In order for a lender to approve a short sale, they will want to see that you can no longer afford making payments on the home. Anything that makes paying your mortgage difficult an be considered for as a reason for hardship. Common reasons for hardship include: job loss, relocation, military service, divorce, death in the family, among other things. In order to prove hardship, you will submit financial documentation as well as a hardship letter to prove why a Knoxville short sale is the only option. An experienced short sale agent can help you get the information together that you will need. If it has become difficult for you to make payments on the investment property, a Knoxville short sale could be a good option for you to avoid foreclosure. A short sale will allow you to sell the property for less than is owed and walk away debt free. As of right now, the Mortgage Debt Forgiveness Act has no yet been reinstated, so you could possibly owe income taxes on the forgiven debt from the short sale. Be sure to consult with an attorney or tax professional to see about the possible implications for the future. 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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