Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
[email protected]

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Knoxville Foreclosure Question: What If I Miss Mortgage Payments?

Knoxville Short SaleIn our Ask the Expert Section, we recently received the following question from Allie, she asks, "I lost my job about a month ago and am getting to the point where it could be difficult for me to make my mortgage payments. I've found another job but am not making enough money to pay all of my bills. I've tried calling my lender to see what can be done but haven't gotten anywhere. I'm afraid of losing my Knoxville home, but am not sure what other choice I have. So, what happens if I miss mortgage payments?" Technically, your lender can start foreclosure proceedings after any missed payment on your Knoxville home. More than likely, they will not initiate any foreclosure proceedings after just one missed payment, but it is important to know that they do have the right to after any missed payments. Foreclosures in Tennessee can move very quickly once foreclosure proceedings are started, which is why it is important if you're facing foreclosure that you explore what other alternatives to avoid foreclosure you may have. Here is a breakdown of the foreclosure process in the state of Tennessee: Default What it is: When you miss a payment. It can be a missed payment to your lender, on property taxes, or on homeowners association dues. A lender can technically file for foreclosure after one missed payment, however, typically they wait until a homeowner is a few months behind. Pre-Foreclosure -- The Window of Opportunity What it is: The time between your first missed payment and the legal notice. There is no set time for this. A lender could decide to wait 2 months before they file for foreclosure or they could wait 2 years. Regardless, if you've missed payments, this is the time you can explore your options to avoid foreclosure on your Knoxville home. Options to avoid foreclosure on your Knoxville home include: doing a short saledoing a deed-in-lieu of foreclosureloan modification, or refinancing. Legal Notice What it is: When the homeowner receives notice that the foreclosure process has been started.  Tennessee is a non-judicial foreclosure state. Most Deeds of Trust contain a "power of sale clause" which allows the lender to start foreclosure proceedings in the case of default. Notice of the sale must be printed in a county newspaper at least three times before the sale date. Also, if the homeowner is still in possession of the property, they must receive written notice of the sale date at least 20 days prior to the sale. Bank Sale or Auction Date What it is: The lender appoints a substitute trustee to conduct the auction. The lender typically makes the first bid and the home goes to the highest cash bidder. If no one bids higher, the lender takes possession of the house. Deficiency Judgement What it is: The deficiency judgment is what is still owed to the bank after the sale. If the mortgage amount was $125,000 and the house sold for $100,000, the amount that the lender could pursue you for as a deficiency judgement is $25,000. Are you curious about your options to avoid foreclosure on your Knoxville home? If so, please do not hesitate to contact me by phone at 865-696-9002 or via email at [email protected]. My team and I are dedicated to helping homeowners explore their options to avoid foreclosure.  Also, be sure to check out our Knoxville Short Sale and Foreclosure Solutions Page.

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