Knoxville Short Sale Question: What If My Lender Forecloses First?
January 9, 2015 Blog
Man-With-Question-06In our Ask the Expert Section, we recently received a question from Peter, he asks, "I'm over a year and a half behind on my Knoxville mortgage payment. After trying to to modify my loan for over a year, I finally gave up and decided to do a short sale. I'm afraid that it is too late to do a short sale on my Knoxville home. What happens if my lender forecloses prior to finishing my short sale?" One problem with Knoxville short sale is the bureaucracy involved with the process. The foreclosure department doesn't always talk to the short sale department, which is why foreclosures can sometimes be started while a short sale is in process. Or in some cases, loans can even be sold while a short sale is in process. For all parties involved, this can be a major source of frustration. Luckily, in some cases, lenders are not allowed to start a foreclosure if short sale paperwork has been sent to the lender. In the case of Fannie Mae and Freddie Mac short sales, lenders are not allowed to foreclose if short sale paperwork has been received within 37 days of the foreclosure date. For Knoxville homeowners facing foreclosure, it is important to start the short sale process sooner rather than later. If the foreclosure process is started prior to a short sale, it is possible to sometimes delay or stop foreclosure. Lenders have slowly but surely embraced the Knoxville short sale process, so if they are able to see that there is a buyer for the short sale, they are willing to delay or stop foreclosure. As far as your situation Peter, you have nothing too lose by doing a Knoxville short sale. Find yourself a solid short sale agent who will give you the best chance as success. Please do not hesitate to give my team a call at 865-696-9002 or send an email to [email protected]. We’ve helped countless Knoxville homeowners avoid foreclosure. Give us a call today for a free consultation.
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