Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

865-675-8326
RE/MAX Preferred Properties
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Avoid Foreclosure Knoxville – 5 Reason Why Short Sales Get Denied

bigmistakeKnoxville short sales are a common way to avoid foreclosure. A Knoxville short sales allows you to avoid foreclosure, does less damage to your credit, and allows you to buy a home sooner. Unfortunately, not all short sales get approved. So, what are some common reasons why Knoxville short sales get denied? Lack Of Hardship When it comes to approving Knoxville short sales, lenders want to see a short sale is a last ditch effort. If they are going to take a loss on a home, they want to see there is a good reason. Thus, why lender require documented hardship to approve a Knoxville short sale There are wide variety of reason lenders will acept for hardship including job loss, wage reduction, death, illness, and relocation. An experienced short sale agent will be able to help you prove your case to a lender. Price Is Too Low When it comes to pricing a Knoxville short sale, the price can't be too high or too low. It must be high enough to please the lender, and low enough that the buyer is motivated to buy it. Negotiating this fine line can be tricky, which is why it is important to have an experienced agent. If a lender is wanting too high of a price, an experienced agent will be able to help vindicate the price. Read the rest of this entry »

Knoxville Foreclosure Question – How Long Does Foreclosure Take In TN?

Avoid_Foreclosure_REpageIn our Ask the Expert Section, we recently received a question from Hal, he asks, “I've missed 6 months worth of mortgage payments on my home. My wages were cut my 30% and it made it difficult for me to continue making payments. I'm scared that foreclosure on my Knoxville home. How quickly does foreclosure happen in Tennessee?" Hal, there is no exact timeline for how quickly foreclosure happens in Tennessee. I, though, offer you a brief explanation of how the foreclosure process work in Tennessee. Tennessee is a non-judicial foreclosure state, which means lenders are able to foreclose without a court order. This is why the foreclosure process can happen in Tennessee quickly.  Deeds of trust in Tennessee contain a power of sale clause, which allows lenders to foreclosure without going to court. Here is a breakdown of the Knoxville foreclosure process: 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. Read the rest of this entry »

Avoid Foreclosure Knoxville – Is A Short Sale The Only Option?

knoxvilleshortsalewithtwomortgagesFor Knoxville homeowners facing foreclosure, homeowners have a few different options to avoid foreclosure on their Knoxville home. A short sale is a common way for homeowners to avoid foreclosure; however, it is not the only option to avoid foreclosure. So, what other options to homeowners have to avoid foreclosure on their Knoxville home? One option a Knoxville homeowner can pursue is a loan modification. In the case of a loan modification, it is simply the terms of the loan that change. For instance, if a homeowner has an adjustable rate mortgage that started at a low rate and increased to a high rate which makes it difficult for the homeowner to make payments, the modification would lower the rate making payment possible. Earlier this year, Fannie Mae and Freddie Mac announced a streamlined modification process. Another option Knoxville homeowners have to avoid foreclosure is to refinance.  With the help of the Homeowner's Affordable Refinance Program, homeowners can refinance the terms of the loan to help make their mortgage payment more affordable. In order to qualify for the HARP program, Knoxville homeowners must meet a few requirements. First, the loan must be owned by Freddie Mac or Fannie Mae. Also, the loan must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. Also, the loan cannot previously be refinanced through HARP, unless it was a Fannie Mae loan that was refinanced between March – May 2009. In addition, the loan-to-value (LTV) ratio must be greater than 80%. Finally, the borrower must be current on their mortgage at the time of refinance and for the 12 months prior. Read the rest of this entry »

3 Steps To Improve Your Credit After A Knoxville Short Sale

knoxvilleshortsalescanbeslowKnoxville short sales are a common alternative to avoid foreclosure on your Knoxville home. Even though short sales are less damaging to your credit, they can still do their fair share of damage. If you've completed a short sale, here are three steps to improve your credit after a short sale. The first step to improve your credit after doing a short sale is to check your credit report after the sale is completed. Checking your credit report is important for a few reasons, most importantly, it is important to know where your credit is after the sale. It is also important to check your credit report for any possible mistakes that could hurt your score any further. Read the rest of this entry »

Knoxville Short Sale Question – We’ve Outgrown Our Home, What Are Our Options?

imagesIn our Ask the Expert Section, we recently received a question from Zac, he asks, "My wife and I bought a home  9 years ago. Since then, our family has grown, and we're needing some bigger. Unfortunately, our Knoxville home would not sell for what we bought it for, home in the area are selling for about $60,000 less. I've thought about doing a short sale, but do I have other options?" Zac, there are many other homeowners in a very similar situation, where they owe more on their home than it is worth and are ready to sell. You have a few different options as far as what you can do with your Knoxville home. First, depending on your financial situation, you could bring a check for the difference to closing. While that is not a the most desirable choice, it will allow you to sell your Knoxville home and find something more suitable for your family. Read the rest of this entry »

Knoxville Short Sale Question: How Do I Know If I Qualify?

Man-With-Question-06In our Ask the Expert Section, we recently received a question from Eve, she asks, “I’ve been in a very difficult situation where it has been hard for me to continue to make my mortgage payments on my Knoxville home. I lost my job and bills started piling up. I know I can't sell my Knoxville home for what it is worth. I've thought about doing a short sale but don't want to waste my time if I won't qualify. How do I know if I qualify for a short sale?" Short sales can be fickle, some get approved and others don't. There is no true formula why some get approved and others don't, which can be extremely frustrating. With that in mind, you really have nothing to lose my pursuing a Knoxville short sale and everything to gain. If you have suffered some sort of hardship, and you're able to prove it, you have a pretty good chance to make your case. Lenders have started to embrace short sales more and more over the past few years too. Read the rest of this entry »

Knoxville Short Sales – HUD Announces New Short Sale Rules

makes_eat_timeKnoxville short sales are ever evolving. Effective October 1st, the Secretary of Housing and Urban Development announced new short sale requirements for all FHA short sales. Read on below to see a breakdown of these new regulations and how they will effect Knoxville short sales in the future. In order to complete a Knoxville FHA short sale, a seller must meet the following requirements: -They cannot list or their Knoxville home with anyone they are related to or have a close personal relationship with. The transaction must be at "arms length." Any violation of the "arms length" transaction rule are punishable by law. -The seller must be in default the day that the transaction closes. -All liens (HOA liens, judgments, etc) against the property must be released prior to closing. If a lien holder does require payment, they must submit that request in writing, noting the amount that must be paid along with the promise to release the lien once the debt is paid. Read the rest of this entry »

Knoxville Short Sales – Why Responsive Sellers Are Key

Knoxville Short Sales can help You get your life backThere is no exact equation to ensure Knoxville short sale success. For many homeowners, they feel like the situation is completely out of there hands. Perhaps, they've tried working with their lender or have tried to find ways to make ends meet, only to find defeat. Regardless, by the time most sellers are thinking about doing a Knoxville short sale, many sellers are at the end of their rope. Fortunately, one key to Knoxville short sale success lies in the sellers themselves, and here is why. If you've heard anything about Knoxville short sales, you've probably heard they're not easy. One of the big reasons Knoxville short sales an be difficult is due to the sellers themselves.  Short sales require a great deal of patience, waiting, and effort on behalf of the seller. The more flexible the seller, the smoother the short sale. Throughout the process, Knoxville short sales also require a great deal of documentation from sellers as well. It can be frustrating to have to send paperwork over and over and over again to lenders, but without it, a lender is unable to consider the short sale. Lenders will oftentimes not even consider a short sale until a file is complete. Lenders are much more willing to work with sellers when they get paperwork on time and can see the seller is truly putting forth the effort. Read the rest of this entry »

Knoxville Short Sale Question: Offer Has Been Sent To My Bank, Now What?

Knoxville Short Sale Take PatienceIn our Ask the Expert Section, we recently received a question from Al, he asks, "My wife was relocated for two years ago. We owed to much on our Knoxville home to sell it for what we owed, so we rented it out. Our tenant stopped making payments and did a lot of damage to the home. We contacted a local agent about doing a short sale a few months ago and finally got an offer on our home. Everything has been sent to our bank, is there anything we should be doing now to help our Knoxville short sale?" Knoxville short sales can be tough. After a packet and offer have been submitted for a Knoxville short sale, there is a whole lot of waiting. For many sellers, this can be extremely frustrating to go weeks without any answers The important thing to remember is that there is nothing abnormal about this. Here are a few possible outcomes that can happen after submitting your short sale packet to your lender: The first option (and most ideal) is that your short sale proposal is accepted. If that is the case, it will be necessary to close on the Knoxville home as soon as possible. Generally, you have 30 days to close, but it is generally better to close sooner rather than later. As soon as you begin a Knoxville short sale, it is generally best to come up with a plan of where you will go once the sale is complete. Read the rest of this entry »

3 Things To Expect During A Knoxville Short Sale

urlNowadays, the term "short sale" is a relatively common term for the Knoxville real estate market. Still, for many sellers facing foreclosure on their Knoxville home, short sales are still shrouded by a lot of false information. Here are 3 things to expect during a Knoxville short sale. 1. Despite changes to short sale guidelines, Knoxville short sales can take a long time. Short sales are still taking anywhere from 4 to 6 months to complete. While it can be extremely frustrating to sellers, the time is very worth it to sellers, since short sales have a better outcome than foreclosures. Luckily now, short sale agents have more tools to help escalate slow short sale files. 2. You will be asked for documentation over and over again. One problem with short sales is that documentation can become quickly outdated, which can be extremely frustrating for sellers. You can expect to have to resubmit financial paperwork throughout the process. Without it, a short sale can stall since many files will not be approved until the file is complete. Read the rest of this entry »

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