Homeowner Success Stories Category
Knoxville Short Sale Tell The Truth In Your Hardship Letter
In a short sale the hardship letter is one of the most important parts in getting a short sale accepted. It is not a lot of fun to write a hardship letter. In fact, it can be depressing. Many people may not know how bad their lives have become until they reach a point of writing a hardship letter.
Sometimes seeing all those awful things in writing is startling and some people start crying. However, do not turn and start talking about how your life will improve.
Do “NOT” share your hopes and dreams for the future with the bank. It’s none of the bank’s business.
If there is hope on the horizon, if there is a chance for recovery and for you to become whole again, then the bank will not hesitate to grab a knife and plunge it into your heart.
If your bank senses anything that shows that you might have the financial means at some point in the future to repay part of that debt, then the bank will jump on it like hot fudge on a sundae.
What Constitutes A Hardship On A Knoxville Short Sale?
In yesterday’s post we talked about the importance of the hardship letter in a short sale. Many people think a hardship 
is mainly based on financial matters and that is not necessarily the case.
Anything that makes it difficult for you to keep on making a mortgage payment might qualify to be a hardship.
One thing that the bank doesn’t want to see is a homeowner who seems to be looking for a way out simply because the home is not worth the amount the owner paid for it.
Being upside-down is one of the qualifications for a short sale but a bank may not grant a short sale solely on that basis.
Knoxville Short Sale Hardship Letter The Basics
When I interview sellers who want to short sale in Knoxville, I ask them to describe their hardship.
Agents who do a lot of short sales can sometimes become a little insensitive because we are focused on the statistics. For instance, when a seller says she is getting divorced, it’s possible that I may not show a lot of emotion.
Then I realize how that comes across, which is not at all in the way I intended it. Trying to do a short sale or loan mod because of relationship difficulties is acceptable to most bank guidelines.
It’s not good news that the you and your spouse are splitting up. But, it is important for your lender to know. In your hardship letter, you want to explain 3 things:
Why A Knoxville Short Sale Is A Win-Win For Everyone
While doing a real estate transaction, not all parties with a financial interest can be winners. However, a successful short sale is one of those rare cases where everyone leaves a winner.
The Seller wins by avoiding foreclosure: This will also help the seller to avoid any credit damage that goes along with foreclosure.
In essence, the property is sold and the seller’s lender pays all the costs associated with the sales process. In most cases, the seller cam move on with their life without paying a dime out of pocket.
The Mortgage holder wins by reducing the loss they incur to get the unpaid loan off their books: It is obvious that the costs associated with acquiring a property through foreclosure hit the mortgage holders really hard.
Knoxville Short Sale How Does It Affect My Credit?
A successful short sale helps the seller to avoid any credit damage that could be brought about by a foreclosure.
Such damage is not something to admire as it may take a minimum of seven years for someone before it goes off your credit report. That is why is it best to do all you can to avoid it.
When you short sell you house, you will recover quickly from the dings of late mortgage payments, provided you can keep your other accounts current.
Knoxville Short Sale Myth: Banks Aren’t Approving Short Sales Because They Don’t Want To Take Big Losses
This is another short sale myth we’ve seen tossed around. Some people in the media even suggested that banks were delaying foreclosures to delay losses being recorded on their books.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Here is what I think is the real reason: The bank departments that handle foreclosure are understaffed.
After all, foreclosures increased hugely since the housing crisis started. The banks have tried desperately to hire on more staff.
Knoxville Short Sale Process Can You Speed Them Up?
Here in our “Ask The Expert Area” We had the following question “I am trying to buy a short sale. It has been 4 months and we have heard nothing except that we are now 
on our 2nd negotiator, still with no contact from them.
I am getting very frustrated. Is there anything I can do on my end to try to push the process along, or is it all up to the agent? Mary asked.”
Knoxville Short Sale Question: Why Does My Lender Want My Last 2 Pay Stubs?
Question in our “Ask The Expert”….“Why does my lender need copies of my last 2 pay stubs? Are they hoping to garnish my paycheck?
ASK THE EXPERT
I am concerned that if I give it to them, then they will use it to garnish my paycheck.
They have said if they don’t get them, then they will not approve the short sale. What should I do?
How do I find a Knoxville Realtor that specializes in short sales?
Knoxville TN – Are you looking for a Knoxville Realtor that specializes in short sales. It is important that you pick the right agent. Many agents turn down short sale listings because they are unfamiliar with the process. These transactions are much more difficult and complicated than your average real estate transaction.
Click here to discover how other sellers successfully did a short sale and avoided foreclosure.
Because of the foreclosure process, you usually only have one chance at a short sale. If your first agent isn’t competent, then you risk losing your house to foreclosure. Then you have to wait another 5-7 years to buy your next house. First, ask the agent you are interviewing why they qualify to help you. Do they have any special short sale training or designations? Many agents have taken specialized training and education. They care about being up to date with the current trends in the market.
How To Ensure Accurate Appraisals And A Successful Knoxville Short Sale
Knoxville TN –As we talk about in a previous posts the biggest threat to your short sale is a high appraisal. Which is why your agent needs to make sure the appraisal is accurate.
Here is the process we follow to ensure an accurate appraisal.
The person doing the appraisal doesn’t understand why the home is selling for a specific sales price. They don’t understand why buyers are only willing to pay X. That is why we must explain that to them.
