Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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The #1 Thing That Will Mess Up A Knoxville Short Sale

urlKnoxville short sales are complicated transactions. Any unexpected situation can complicate a short sale and can sometimes ruin a short sale altogether. So, what is the the #1 thing that will mess up a Knoxville short sale? Unexpected liens are one thing that can throw a big wrench in any short sale. Unexpected liens can be anything ranging from IRS liens to HOA lines to judgements from a credit card company. Unexpected liens can cause serious issues in a Knoxville short sale due to the fact that they cause further negotiation with a short sale lender. In many cases, lenders are not willing to payoff these liens at closing, due to the fact that they can seriously cut into what the lender makes off the sale. Lenders are willing to pay closing costs, real estate commissions, and past due taxes in a short sale, but other non-mortgage liens are a different story to them. Ideally, in any Knoxville short sale, it will be known from the very beginning how many liens there are on a property. In a majority of cases, a seller usually knows if there are any liens on a property. Unfortunately, that is not always the case. In some cases, sellers who are facing foreclosure have also struggled to pay other bills, which can cause there to be other liens on a property. A preliminary title exam can be preformed by a title company to see if there are any unexpected liens on a property. If there are any unexpected liens on a property, there are a few things that can be done so that a Knoxville short sale is still possible. First, a seller can payoff the lien separately prior to closing. If they do not have the funds to do so, in some cases, it is possible to try and see if a lender will allow them to be paid at closing. If a lender is not willing to negotiate, it is sometimes possible to work with the other lien holder. In many cases, they are willing to release the lien if a payment plan is set up. 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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