Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

865-675-8326
RE/MAX Preferred Properties
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Knoxville Short Sale Question – Are Lenders Still Approving Them?

urlIn our Ask the Expert Section, we recently received a question from George, he asks, "I want to do a short sale on my Knoxville home, but am afraid that I'm too late. I've been hearing news that the housing market is improving and it makes me worry that short sales are no longer happening. I've missed two years of payments on my Knoxville home and don't want to go through foreclosure. Are lenders still approving Knoxville short sales?" George, while the real estate world is improving throughout the country, there is still some necessity for Knoxville short sales. Lenders are still approving short sales, since there are many Tennessee homeowners underwater on their homes. To prove my point further, here is some recent data from Housing Wire about the number of homeowners facing foreclosure. Read on to find out more. -There are still 9.1 million Americans that are still underwater on their mortgage during the first quart of this year. This means that 17% of all American homeowners are still facing foreclosure on their home. (Note: To be considered underwater, a homeowner must owe 25% more on their home that its current market value.) 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 »

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 »

Does It Matter Who The Knoxville Short Sale Agent Is?

As a Knoxville Realtor I can honestly say, the answer is "YES" In my travels around Knoxville neighborhoods showing short sale homes for sale as well as the emails and phone calls I receive from sellers and agents, their is no question that Rick Smenner CDPEyour choice of  agent is important. Let me give you an example..... Read the rest of this entry »

Knoxville Short Sale Question Do I Have To Fix My Home Up Before I Sell?

In our "Ask The Expert Area" we had the following question the other dayFix Up Knoxville Short Sales “I lost my job recently but was able to find another job. But I'm making less money and can't afford to keep my current house because we can't afford the payments. We owe more on the house than it is worth and are considering a short sale. I have a two part questions. First because I'm making less money at my new job would we qualify for a short sale? Second our house needs alot of work would we have to fix it up prior to selling it. We really can't afford to put any money into the home now. Thanks Dan and Cathy” Read the rest of this entry »

Knoxville Short Sale Tell The Truth In Your Hardship Letter

Knoxville Short Sales can help You get your life backIn 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. Read the rest of this entry »

What Constitutes 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 Knoxville Short Sales Don'r need to be troubled watersis 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. Read the rest of this entry »

Knoxville Short Sale Hardship Letter The Basics

Knoxville Short Sale Hardship LetterWhen 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: Read the rest of this entry »

Why A Knoxville Short Sale Is A Win-Win For Everyone

Easy Knoxville Short SaleWhile 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. Read the rest of this entry »

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