Knoxville Short Sale Question – What If I Have Other Liens On My Home?

knoxvilleshortsalewithtwomortgagesIn our Ask the Expert Section, we recently received a question from Todd, he asks, “I want to do a short sale on my Knoxville home, but am afraid my lender will not approve the sale. In addition to my mortgage, I also have a judgement filed against me from some medical bills that has attached to my property. Can I still do a short sale on my Knoxville home if there are other liens on the property?" IRS Tax liens, homeowner's association liens, and judgements that attach to a property are all things that can make a Knoxville short sales difficult. The main reason lenders are not willing to payoff other non-mortgage related liens is due to the fact they're already selling the home at a loss. Other liens can take a cut out of the proceeds, which is why most lenders will not approve paying of those liens with the short sale proceeds. With that being said, every lender is different and it can always be difficult to 100% say what they will and will not do. Unfortunately, if there are other liens on your property that are non-mortgage related, they will need to be paid off with closing. Whenever a home is sold, it is important that the transfer of title is free and clear of any previous liens. So, as a seller, you'll  need to take care of paying off the lien. If you're afraid you may have difficulty paying the lien in full, consider trying to work with whoever the lien is with to come up with a solution. Considering your situation, most people will try to work with you. In most cases, foreclosure wipes out all liens, so it would be in their best interest to work with you otherwise they may not receive any type of payment if you end up in foreclosure. Like many people who go through hardship, it can be difficult to keep up on all of your payments. Generally, it is best to keep up with what you can, especially homeowner's association dues. Any additional liens on the property can make a short sale difficult, so it is best to prevent the situation before it is a problem. Are you a Knoxville homeowner facing foreclosure? If you have questions about avoiding foreclosure, please contact me and my team for a free consultation. You can email me at [email protected] or give me a call today at 865-696-9002. We are dedicating to helping Knoxville homeowners avoid foreclosure.

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