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 – We’re Underwater On Our Home, What Do We Do?

knoxvilleshortsalewithtwomortgagesIn our Ask the Expert Section, we recently received a question from Phil, he asks, "My wife and I are currently underwater on our Knoxville home by about $20K. We have a three bedroom home, but our family has grown enough that we need something bigger. We're still current on our mortgage and all of our bills, which we've heard could hurt our chances at a short sale. We've talked about reaching into our retirement, but don't want to reach into our hard earned money. My wife was out of work for awhile, so we weren't saving as much. We've also considered doing a short sale. What is our best option on our Knoxville home?" Phil, you're in a very tough situation. There are a lot of people in a similar situation and it can be a hard decision to make. You'll have to weigh the costs of whether or not you want to touch your retirement income.  If you are considering doing a short sale on your Knoxville home, under the new regulations you are not required to be behind on your mortgage payments. Still, there can still be a waiting period of up to two years before you are able to buy another home. It's always hard to say what short sales lenders will approve and what they won't.  With your wife's loss of income and the size of your growing family, you could make a decent case for hardship. You would have nothing to lost by pursuing a short sale, at worst it doesn't get approved. You could also consider trying to rent out your home. If you can find a renter for your home and are able to turn a little profit, it could be a possible solution. You could also consider trying to refinance your home, since you're not behind on your payments. With refinancing, you could at least get a smaller monthly payment. Consider your options and what will be best for you and your family. If you're at the point where you just need to get rid of the home, a Knoxville short sale could be the best options. Consider talking to an attorney or financial advisory to way the options. If you’re thinking about doing a short sale on your Knoxville home, please do not hesitate to give my team a call at 865-696-9002 or send an email to [email protected]. We specialize in helping underwater Knoxville homeowners avoid foreclosure and helping them understand their options.

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