Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
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How A Knoxville Short Sale Affects Your Credit

stop-foreclosure-short-saleKnoxville homeowners who owe more on their home than it is worth are put in a very difficult situation. Oftentimes, the decision to short sale is not an easy one. Homeowners often wonder what the implications of a short sale will mean for their future, particularly on their credit score. If you're considering doing a short sale on your Knoxville home, here is how a Knoxville short sale can affect your credit. In order to avoid foreclosure, many Knoxville homeowners opt to do a short sale. A Knoxville short sale will do less damage to a homeowner's credit than a foreclosure. In addition to a Knoxville short sale appearing on your credit score, late and missed payments will also do some damage to your credit score, along with any other delinquent accounts. As far as how a Knoxville short sale will damage your credit, it depends how the short sale is reported to the credit bureaus. In many cases, lender will report the sale as "settled," which shows that only part of the debt was repaid. In some cases, it is possible to get the lender to agree to report the debt as "paid," which will do less damage to your credit. In some cases, if the short sale was reported incorrectly as a foreclosure, the damage can be much worse, which is why it is very important to see how it was reported after a Knoxville short sale. If it was reported incorrectly, there are steps that can be made to get it corrected. Read the rest of this entry »

Knoxville Short Sale Question: Should I Be Ashamed Of Doing A Short Sale?

Knoxville Loan ModificationsIn our Ask the Expert Section, we recently received a question from Yvonne, she asks, "I haven't made a mortgage payment on my Knoxville home in over a year. I've tried everything to make paying a my mortgage possible, including working 2 jobs. But, I have two kids and I can't seem to make ends meet. I tried working with my lender but they've been a pain. I started a short sale but don't want to let the world know about my situation. Should I be shamed of doing a short sale on my Knoxville home?" In recent years, tough economic times have hit a lot of people very hard. While every situation is a little different, there are many people who have been hit by hardship and who have been in a very similar to you, which is why short sales have been so popular in recent years. There is absolutely nothing to be ashamed of by opting to do a Knoxville short sale. The decision to complete a short sale is not an easy one. In many cases, prior to deciding to do a short sale, homeowners have already been put through the ringer by the lender. They may have tried to complete a modification or approach there lender for help, only to have to help for the efforts. After being put through all that, it can take a lot for homeowners to go ahead and pursue a short sale. Read the rest of this entry »

Knoxville Short Sale Question: How Much Of A Loss Will My Bank Take?

knoxvilleshortsalequestionsIn our Ask the Expert Section, we recently received a question from Claire, she asks, "My husband and I bought a luxury Knoxville home back when the market was hot in 2007. Our mortgage terms where a little exotic, and our interest rate eventually rose it a ridiculous rate. The interest rate combined with some other financial difficulties have made it very difficult to continue paying our mortgage on our Knoxville home. After meeting with a Realtor about selling our Knoxville home, we know that our home would not sell for what we owe and we'd still owe about $100K more on our how. If we do a short sale, how much of a loss will my bank be willing to take?" With Knoxville short sales, there is no tried and true formula as to what banks will and won't accept. If there were, short sales would be a much easier, predictable process. The good news is, though, lenders will be willing to consider a lot of different situations when it comes to short sales. In my Knoxville short sale experience, I've seen many different scenarios where short sales have been approved. I've seen lenders approve short sales with a $20,000 loss and I've seen lenders accept a loss of $100,000. It really just all depends about the situation. If you are able to prove that you've gone through hardship and that paying your mortgage is no longer possible, you have a pretty solid chance at short sale approval. In addition, you'll need to provide the proper data that your home could not sell for what you owe on it.  An experienced Realtor will be able to help your provide the necessary data for this. Read the rest of this entry »

How Inexperienced Agents Give Knoxville Short Sales A Bad Name

pulling hair outOver the past few years, Knoxville short sales have oftentimes gotten a bad name. In some cases, the complaints are justified, while in other the short sale troubles don't stem from short sales themselves, but rather from the inexperienced parties involved. A Knoxville short sale agent can make or break a short sale outcome, which is why many inexperienced short sale agents have given them a bad name. One common thing you hear from inexperienced Knoxville short sale agents is that they are impossible to complete. Obviously, this is not true since short sale closes all of the time. Short sales take a great deal of time and patience, which is why many agent dislike them. Unfortunately, hearing many agents talk about Knoxville short sale in this way making homeowners believe that short sales are impossible. Another thing you'll commonly hear from inexperienced Knoxville short sale agents is that the process is horrible and it takes forever. While the short sale process can be maddening, there are ways to make sure short sales move along a little quicker. In addition, it is important that short sales have consistent follow up to ensure their success. Read the rest of this entry »

Knoxville Short Sale Question: Our Loan Was Sold, Now What?

thinking-web-picIn our Ask the Expert Section, we recently received a question from Josh, he asks, "I started a short sale on my Knoxville home about 6 months ago. My Realtor thought we were getting close to approval when we received notice that my loan had been sold to another company. At that point, we had 6 months invested on the short sale, so the buyer decided to walk. My agent said we would have to begin the process all over again. I'm already a year behind on payments. With my loan being sold, is it too late for a short sale to be completed?" One of the most frustrating aspects about completing a Knoxville short sale is the bureaucracy. Oftentimes, different departments don't talk to one another, which is why sometimes servicing rights get transferred during a short sale. As irritating as it is, it can happen and unfortunately, there is nothing that can be done by the homeowner or the agent. The good news is though you can still complete a Knoxville short sale. As irritating as it can be to start all over again, it is well worth the effort to avoid foreclosure on your Knoxville home. Even if the previous buyer walked away from the sale, short sales often have no trouble attracting buyers, so it should be an issue to find another one. Read the rest of this entry »

Knoxville Short Sales – Why Keeping Current On HOA Dues Matters

Knoxville Home Saver Loan Mod HelpIn a Knoxville short sale, a lender is willing to pay for a seller's portion of closing costs, past due property taxes, and even real estate commissions. Unfortunately, there are certain things that lenders are not willing to cover in a short sale, like homeowner's association dues [HOA dues].  If you're doing a short sale on your Knoxville home, here is why it is important to keep current on your HOA dues. If a homeowner doesn't pay HOA dues, many homeowner's associations have the right to put a lien against the property. This is is why it can be extremely important to stay current on your HOA dues if at all possible when doing a Knoxville short sale. In order to sell the property, all liens against the property must be paid in full at closing to give the buyer clear title. Unfortunately, in many cases, lenders are not willing to payoff HOA liens at closing, since they are already taking a loss on the property. Read the rest of this entry »

How To Start A Knoxville Short Sale Off On The Right Foot From The Start

a-day-late-and-a-dollar-short2With any Knoxville short sale, time is of the essence. Foreclosure can happen in the state of Tennessee very quickly, which is why it is so important the homeowners start their short sale off right from the very beginning. Read on to find out more. Step 1: Hire An Experience Short Sale Agent. An experienced short sale agent can make all the difference when it comes to getting your short sale approved. An experienced agent will have the proper skills and experience to ensure your sale gets closed. When it comes to selecting a Knoxville short sale agent, it can be helpful to start with someone who carries a designation, like the Certified Distressed Property Expert [CDPE]. Interview a few agents and see who you feel comfortable. It is important to look into how many short sales they've closed and what their background experience is. Step 2: Be Diligent About Getting Paperwork Together. Once you've selected a Knoxville agent to assist you with your short sale, it is essential that you get him or her all of the paperwork they need. Many lenders will not even review a file until all of the paperwork is complete. Failing to do so can greatly delay or hurt your chances of short sale success. While it can be a pain to have to gather all of the paperwork and keep it updated, it is well worth it in the end. Read the rest of this entry »

Knoxville Short Sale Question: Does Life Go On After A Short Sale?

imagesIn our Ask the Expert Section, we recently received a question from Alex, he asks, "Two years ago, I got into a very difficult situation after my hours were cut at work. I began incurring quite a bit of debt to try and make ends meet, but I could never quite make things work. I stopped making payments on my Knoxville home a year and a half ago, after trying (and failing) to modify my loan. With foreclosure looming, I started a short sale as a last ditch effort. I'm scared about what implications this may have after the sale is completed. Does life go on after a Knoxville short sale?" Alex, first let me say that I'm very sorry to hear about your situation. There are many Tennessee residents who have been in very similar situations are some form of hardship has made it difficult for them to pay their mortgage. So, you're not alone in your situation, there are many others that have gone through a similar situations. When it comes to facing foreclosure on your Tennessee home, it can be very scary and overwhelming situation, making it hard to know where to turn. The good thing is that you've pursued a short sale. As I typically explain it to my clients, a short sale is the best way out of an already bad situation. If foreclosure is inevitable, a short sale is a step you can take to lessen the blow on your daily life. Read the rest of this entry »

Why Knoxville Short Sales Are Win-Win For Everyone

thumbs_up_colourKnoxville short sales are a common way for underwater homeowners to avoid foreclosure. While Knoxville short sales can be extremely beneficial to sellers, they are also a win-win for all other parties involved, and here is why. Advantages For Seller A short sale allows a distressed homeowner to get out of a very difficult situation. When foreclosure is inevitable, a short sale allows a homeowner a way out of a tough situation with significantly less consequences. While a short sale will do damage to your credit, it is not nearly as bad as going through foreclosure. A short sale gives the seller some time to get back on their feet and in most cases, they are able to walk away debt free. Advantages For The Buyer The buyer in a Knoxville short sale can benefit from a deeply discounted price. For a buyer that is looking to get a home at a discounted price, a short sale offers an alternative to buying a foreclosure. Typically, short sales tend to be in better condition than foreclosures. Read the rest of this entry »

Buying A Knoxville Short Sale? 3 Questions To Ask The List Agent

Sold SignFor any buyer looking to buy a Knoxville short sale, it can be important to get some information from the list agent prior to making an offer. These questions will help you determine if the Knoxville short sale agent is competent so you don't end up waiting for a short sale that will never closer. Here are 3 questions to ask the list agent prior to buying a Knoxville short sale. How Many Short Sales Have You Done? Knoxville short sales can be tricky transactions. They are not for every Realtor, which  is why it is important that every buyer ask this question. If an agent has only done a handful of short sales, the odds for short sale success are not necessarily in your favor. After all, you don't want to wait 4 or more months on a short sale that will never close. Read the rest of this entry »

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