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Knoxville Short Sale Question – When Can I Buy A Home Again?

thoughtful-pen-writing-24581037-2560-1702In our Ask the Expert Section, we recently received a question from Danny, he asks, "I completed a short sale on my Knoxville home six months ago. After losing my job, it was very difficult to keep paying my mortgage. With foreclosure being inevitable, I decided my best option was to complete a Knoxville short sale. We were able to walk away debt free from our Knoxville home. I've now found steady employment and am ready to buy a house again. How soon can I buy a Knoxville home?" Danny, I'm very sorry to hear about your situation. The good news is that buying a Knoxville home may not be as far off as you may imagine. With the help of the FHA "Back To Work Program," you can buy a home in as little as a year with as little as 3.5% down. In order to qualify for this program, Knoxville homeowners must meet the following requirements: -First, you must have experienced an "economic event," which includes any of the following events: short sale, deed-in-lieu of foreclosure, foreclosure, Chapter 7 bankruptcy, Chapter 13 bankruptcy, loan modification, or forbearance agreement. Read the rest of this entry »

The Knoxville Short Sale Process From Beginning To End

mental-strength-checklistFor many Knoxville homeowners facing foreclosure on their Knoxville home, one of the scariest parts of the whole situation is the unknown of what may happen in the future. A Knoxville short sale is a common way to avoid foreclosure, but the process itself can be a bit of a mystery to most homeowners. Here is a breakdown on the process from beginning to end. The short sale process can start months before a Knoxville homeowner even decides to do a short sale. The process starts after a few missed mortgage payments, when the homeowner finds themselves in a situation they can't get out of. At that point, a Knoxville homeowner must take action to avoid foreclosure, otherwise foreclosure will be inevitable. After a Knoxville homeowner has reached the point where foreclosure is inevitable, a homeowner usually will meet with one or two short sale agents to find more about the process. At that point, the lender is contacted by the short sale agent to notify the lender that the homeowner would like to pursue a short sale. At that time as well, the agent would submit an authorization signed by the seller that will allow the agent to work with the lender on behalf of the seller. Next, all of the short sale paperwork is submitted to the lender. The paperwork includes a wide range of information including financial statements, a hardship letter, a settlement statement showing the payoff to the lender, among other things. Depending on the situation, if the Knoxville home has an offer on it, the purchase contact would be submitted at this point as well. Read the rest of this entry »

Knoxville Short Sale Question: This Sounds Too Good, What’s The Catch?

Everyone Wins In A Short SaleIn our Ask the Expert Section, we recently received a question from Cassie, she asks, "I've been struggling to make my Knoxville mortgage payment. I got injured at work, so I haven't been able to work the hours I used to. I tried to modify the loan on my Knoxville home, but haven't gotten anywhere with my lender. I want to do a short sale, but it just sounds too good to be true. What's the catch with Knoxville short sales? Is there something I'm missing?" For Knoxville homeowners facing foreclosure, the concept of doing a short sale and walking away debt free can sound too good to be true. Many of these homeowners have already been put through the emotional ringer with their lender, trying to find a way to avoid foreclosure. So, once they get to considering a Knoxville short sale, it is easy to see why they would believe Knoxville short sales sound too good to be true. The truth is: there is no catch to doing a Knoxville short sale. For those homeowners facing foreclosure, the choice is often complete a short sale or end up in foreclosure, so there is nothing to lose by attempting to complete a Knoxville short sale. When it comes to deciding between foreclosure and a short sale, a Knoxville short sale is the best way to make a bad situation better. Read the rest of this entry »

3 Things To Do After Completing A Knoxville Short Sale

Knoxville Short Sales can help You get your life backIf you've recently completed a short sale on your Knoxville home, life after a short sale is not as doomed as you may think. While it may take some time to recover from a short sale, life will go on sooner than you may think. Here are 3 essential things that every homeowner must do after completing a Knoxville short sale. One thing that is extremely important after completing a short sale is to make sure that a short sale was reported properly on your credit report. A short sale approval letter will outline how a lender is planning on reporting the sale to the credit bureaus. Then, request a copy of your credit report from all of the three major bureaus to ensure the sale was reported properly. If the short sale was reported incorrectly, you can dispute it with the credit bureaus by sending them a copy of the short sale approval letter. Another important thing to manage after your short sale is your credit. To help raise your credit score, be sure to pay down any existing debt and manage your debt responsibly. It is also extremely important that you make all payments on time. Finally, be leery of opening any new credit accounts if at all possible. Read the rest of this entry »

Knoxville Foreclosure Question: Is There Mortgage Assistance Available?

late-noticeIn our Ask the Expert Section, we recently received a question from Jeff, he asks, "I've been struggling to pay the mortgage on my Knoxville home. I lost my job and haven't been able to find something with the same income. I'm afraid of losing my Knoxville home to foreclosure. I've got two young kids so the thought of losing my home is unbearable. I've heard somewhere that there is mortgage assistance available to Tennessee homeowners who are struggling to pay their mortgage. What programs are available to Knoxville homeowners like me?" Jeff, I'm sorry to hear about your situation. There is a program out there in Tennessee called the Keep My Tennessee Home Program. It is available to Tennessee homeowners exactly like yourself who have lost their job, had wages cut, or had health issues which has made it difficult to pay the mortgage on their Knoxville home. The Keep My TN Home Program will helped homeowners facing foreclosure pay their mortgage, property taxes, homeowner's insurance, homeowner's association dues, and past due mortgage payments. Read the rest of this entry »

Knoxville Loan Modifications – How To Identify A Loan Mod Scam

loan-modification-deniedFor Knoxville homeowners facing foreclosure, there are a few different options to avoid foreclosure, one of them being a loan modification. A loan modification gives homeowners an opportunity to change the terms of their loan so their monthly payment is more bearable. Unfortunately, there are many scammers out there preying on Knoxville homeowners who are having trouble paying their mortgage. Here is how to identify a loan modification scam. One key sign of a scam is if an organization asks for money upfront when doing a loan modification. Anyone who promises to help you do a loan modification for a specific fee is most likely a scammer. No legitimate organization will charge you fees for this service since it is illegal to do so, according to the Federal Trade Commission. If someone approaches you about doing a loan modification on your Knoxville home and what they promise sounds too good to be true, it could also be a scam. There are absolutely no guarantees when it comes to loan modification success. Legitimate organizations, like HUD approved counseling services, will do their best to help you but are unable to make promises about the outcomes. Read the rest of this entry »

5 Ways A Knoxville Short Sale Offers You A Fresh Start

Knoxville Short SalesFor Knoxville homeowners facing foreclosure, the decision to complete a short sale can be a difficult one. In some ways, it can feel like the end of everything, when really a Knoxville short sale offers a fresh start and a way out of foreclosure. Here are 5 ways that a Knoxville short sale offers homeowners a fresh start. Time A Knoxville short sale will give you some much needed time. Foreclosure in Tennessee can happen quickly and homeowners can be left without much time to determine where they will go. A Knoxville short sale can take anywhere from 4 to 6 months to complete, which gives homeowners some time to decide where they will go once the sale is complete. In addition, many Knoxville homeowners are able to stay in the home rent free which gives them some time to save up some money. Walk Away Debt Free A Knoxville short sale will also give you the opportunity to walk away from your Knoxville home debt free. In a majority of short sales, homeowners are able to walk away from the home debt free. This is a huge relief for many homeowners, knowing that the debt they owed on their home is no longer owed. Read the rest of this entry »

Knoxville Short Sales Question – Will My Lender Waive The Deficiency?

Knoxville Short Sale Roller Coaster RightIn our Ask the Expert Section, we recently received a question from Conrad, he asks, "I'm doing a short sale on my Knoxville home. I owe about $60K more on my Knoxville home than it is worth. I'm more than a year behind on payments and just started to get back on my feet. I'm afraid that my lender will pursue me for a deficiency judgment after completing my short sale is complete. Is there any chance my lender will waive their right to pursue me for a deficiency judgment?" Every Knoxville short sale is a little bit different. There are many lenders that are willing to waive their right to pursue you for a deficiency judgment. In a majority of short sale we close, we are able to get a lender to waive this right. A lender outlines how they will handle the debt owed in a short sale approval letter. In many cases, lenders will use terms like "forgiven" or "agrees to release the debt" in a short sale approval letter where they do not intend to pursue a homeowner for what is still owed on a Knoxville home. If you have questions over how the debt will be handled, I always suggest speaking with a trusted attorney for further clarification. Read the rest of this entry »

Knoxville Short Sales – Will Mortgage Debt Relief Be Returning?

taxesFor Knoxville homeowners facing foreclosure, the expiration of the Mortgage Forgiveness Debt Relief Act was a major disappointment. On December 31, 2013, the Mortgage Relief Act expired, meaning that any Knoxville homeowner that does a short sale or that goes through foreclosure this year, will be required to pay taxes on any forgiven debt. So, is there still hope for the Mortgage Debt Relief Act to be extended? Yes, there may still be some hope. The Senate Finance Committee recently approved a tax package that would extend the Mortgage Debt Relief Act for another two years. The extension of the Act would mean that any homeowner that went through foreclosure this year or that did a Knoxville short sale would not be required to pay taxes on that income. The tax package also included an extension of tax deductions for mortgage insurance premiums and energy saving improvements on homes. In order for the Mortgage Debt Relief Act to be extended, it must get the full approval of both the House and the Senate. With any luck, the Mortgage Debt Relief Act will hopefully be extended. Both sides of the political aisle have been in support of the Act, since it has helped countless homeowners since 2007. Read the rest of this entry »

Knoxville Short Sale Question: What Happens To The Debt?

knoxvilleshortsalewithtwomortgagesIn our Ask the Expert Section, we recently received a question from Marshall, he asks, "I'm thinking about doing a short sale on my Knoxville home. I tried to complete a loan modification, but it was recently denied. I feel I have no other way to avoid foreclosure on my Knoxville home. I'm concerned though about the money all the money that I owe. What happens to the money that I still owe to my lender?" In a Knoxville short sale, a home is sold "short" and a lender accepts less that is owed on a home, to avoid having to go through the costly foreclosure process. There are a few different ways that the remaining debt, or deficiency is handled. Here are a few possible outcomes. One outcome that can occur is that the debt is forgiven all together. Contrary to what you may think, this is a common outcome in many Knoxville short sales. Obviously, this is the best outcome that a homeowner could ask for to walk away from the home completely debt free. Read the rest of this entry »

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