Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
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Knoxville Homeowners Alternatives to Foreclosure Category

Knoxville Short Sale Question: Who Is Responsible For Repairs?

repairsIn our Ask the Expert Section, we recently received a question from Kristy, “I'm six months behind on my Knoxville mortgage. I had to relocate for work and I could not continue to keep paying my rent in Texas and my mortgage payment in Knoxville. Prior to moving, I met with a realtor and I owe about $40K more than my home would likely sell for, so I have opted to do a short sale. We finally have a few interested buyers, but I am nervous because my home is definitely in need of some work. In a Knoxville short sale, who is responsible for paying for repairs?" In a Knoxville short sale, it is generally understood that the home is sold "as is." This means that it is not expected that a seller make any repairs to the property and the buyer is aware that they are taking the property in its current condition. In a Knoxville short sale, a seller is in a financial situation that makes paying their mortgage difficult or altogether impossible. This is why it is understood that a seller would not be responsible to make any repairs to the property. Further more, a seller making repairs to the property could raise some questions with the lender. They would question if a seller has money to make repairs, they may have money to keep paying their Knoxville mortgage. Read the rest of this entry »

3 Steps To Take If You’re Behind On Your Knoxville Mortgage

mortgage-cash.ju.topIf you've missed mortgage payments on your Knoxville home, you're not alone. Many Knoxville homeowners are in a similar situation where they are underwater on their home. If you're facing foreclosure on your Knoxville home, here are 3 steps to take if you're behind on your Knoxville mortgage. First, if you're behind on your Knoxville mortgage, it can be helpful to seek professional advice from the very beginning. While it may be scary to contact your lender, the sooner you contact them the better. You may be eligible to modify your loan and make your Knoxville mortgage payments more bearable. You could also contact a housing counselor. They can help advise you on what options you may have to avoid foreclosure on your Knoxville home. Housing counselors are a free service through the U.S. Department of Housing and Urban Development. Read the rest of this entry »

Knoxville Short Sales – What Constitutes Financial Hardship?

Knoxville Loan ModificationsIn order to successfully complete a Knoxville short sale, homeowners must prove they've experienced "financial hardship." This term is actually one that has been coined by lenders as something a homeowner must prove if they're doing a short sale. While the term may seem simple enough, for a homeowner facing foreclosure, this term can be a little more difficult to explain. So, what exactly does "financial hardship" mean? In simple terms, financial hardship is something that changes your life completely. It is something that makes your future uncertain and is something that is not easily fixed. It is something that makes your financial situation stressful and altogether overwhelming. It is a financial struggle that makes paying your bills difficult, if not impossible. There are many different situations that lenders consider to be financial hardship. Some of those possible reasons for financial hardship include: job loss, relocation, death in the family, divorce, incarceration, reductions in income, illness or injury, among other things. These specific scenarios are situations that make it difficult to pay your mortgage, thus making a Knoxville short sale necessary. Read the rest of this entry »

What Documents To Keep After Doing A Knoxville Short Sale

short-sale-contract-twoFor any Knoxville homeowner that has done a short sale, it is extremely important that you keep certain documentation after a short sale. For things like filing taxes or applying for a mortgage to buy a new home, it is important that you have certain paperwork on hand. Here is a brief rundown of the paper work you'll need after completing a Knoxville short sale. The settlement statement is one important thing to keep after doing a Knoxville short sale. For tax purposes, you'll need to have a copy of it when you file your taxes. It will also be an important item when you're applying for a mortgage. Depending on the lender and type of loan, your lender may use the close date to calculate the waiting period that you're eligible to buy a new home. Read the rest of this entry »

Knoxville Short Sale Question: What If I Have A Judgement Against Me?

imagesIn our Ask the Expert Section, we recently received a question from Lyle, “I'm in a tough situation. I lost my job and went through a messy divorce. I can no longer afford to make payments on my Knoxville home and have since then struggled to pay other bills. I racked up a lot of credit card debt during that time, and I know the credit card company has filed a judgement against me that is attached to my Knoxville home. Can I still do a short sale?" When you sell your Knoxville home, regardless of whether or not it is a short sale, all mortgages and liens must be paid off at closing. If the judgment against you is attached to the property, it will need to be paid off at closing or before closing. The thing that can be tricky with Knoxville short sales is that lenders will pay certain things, but refuse to pay others. And, not all lenders have a set standard of what they will pay. Lenders are willing to pay your closings costs, realtor commissions, and past due property taxes. Sometimes, they will be willing to pay past due homeowners association dues. Read the rest of this entry »

Knoxville Short Sale Question: How Much Will I Have To Sell My Home For?

ethics-scaleIn our Ask the Expert Section, we recently received a question from Ted, he asks, “I'm doing a short sale on my Knoxville home. I'm concerned that my Knoxville home won't sell for the price I need it to sell for. It is in need of a new roof and needs some other cosmetic works. How much will I have to sell my home worth in order to walk away from the situation debt free?" Knoxville short sales can be fickle transactions. It can be very hard to say from the very beginning that your Knoxville home must sell for X in order for your short sale to be approved. It is through months of negotiation that an approved price is agreed upon by all parties involved in the short sale transaction. Read the rest of this entry »

Fannie Mae Extends Wait Time To Buy Home After Knoxville Short Sale

KnoxvilleShortSaleGuidelinesChangingStarting August 16th, Fannie Mae will impose longer wait times for those who have completed a short sale on their Knoxville home.  In an announcement made by Fannie Mae made in July, Fannie Mae outlined new wait time requirements homeowners who  completing  short sale. So, what does this mean for those who have completed a Knoxville shore sale? In the past, Fannie Mae world allow homeowners to buy a new Knoxville home within 2 years after completing a Knoxville short sale or deed-in-lieu of foreclosure. Any homeowner with a 20% down payments and a credit score of at least 680 would be eligible to buy a home within two years. Unfortunately, as of August 16th that is all changing. Read the rest of this entry »

Knoxville Short Sale Question: Should I Stop Paying My Other Bills?

billsIn our Ask the Expert Section, we recently received a question from Mary, she asks, "I am in the process of doing a short sale on my Knoxville home. My hours were cut at work, which made it difficult for me to keep paying the mortgage on my Knoxville home. In addition, I've got quite a bit of credit card debt I've accrued during that time. I'm still struggling to pay some of my other bills, since I'm doing a short sale, should I stop paying my other bills?" Once you start doing a short sale on your Knoxville home, it can be tempting to stop paying other bills as well. While it is ultimately a decision that you have to make for yourself, it is important to understand the potential consequences of not paying other bills. Many sellers who are doing a short sale do not realize the potential consequences of not paying other bills. If you fail to make payments on things like credit cards, homeowner's association dues, or even things like child support, it is possible that those lien holders could put a lien on your property. While this may not seem to be a problem if you're doing a short sale on your Knoxville home, it can actually be a larger problem than you think. All liens on a property must be paid off before a short sale is complete, which is why it is important to pay as many of your bills as possible. In a majority of cases, lenders will not be willing to payoff other liens on a property, unless they are a second mortgage. Read the rest of this entry »

Knoxville Short Sales – BOA Announces Changes To Short Sale Program

urlThe Knoxville short sale process is always changing. Rules and regulations for short sales vary from lender to lender and program to program. Another large lender, Bank of America, announced changes to their short sale program this past July. So, what does this mean for Knoxville short sales with Bank of America loans? Read on to find out more. From the beginning of any Knoxville short sale with a Bank of America loan, the homeowner will receive a short sale initiation package once a short sale has been initiated. Included in the package will be one very important form, the Buyer Election form. Before the short sale process can begin, the buyer must sign and return the Buyer Election for BOA to continue with the Knoxville short sale. This is one significant change to Knoxville short sales with BOA loans. In the past, the short sale process could move forward without this form, but now, under these new short sale changes, no Knoxville short sale will proceed without this form being signed. Read the rest of this entry »

Knoxville Short Sale Question: Do I Need To Worry About Maintenance?

thinking-web-picIn our Ask the Expert Section, we recently received a question from Phoebe, she asks, "I was relocated a little over a year ago. I tried to sell my Knoxville home, unfortunately, I owe way more on my home that it is worth. I eventually stopped making payments because it was too difficult to pay living expenses in two different cities. I'm in the process of doing a short sale on my Knoxville home. Do I still need to worry about maintaining the home and keeping utilities on?" As a Knoxville homeowner facing foreclosure, there are many difficult decisions to make. The first of which being whether or not a Knoxville short sale is right for you. It can be very difficult to decide what to do when you're financially strained and upside down on your mortgage. As far as the maintenance on your Knoxville home, it is important to keep in mind that you're still in process of selling your Knoxville home. Even though your home is being sold as a short sale, it is still important to keep up with any of the maintenance that you are able to. Things like maintaining the yard or mowing the grass can go a long way. While this may not be possible to do sine you live out of town, it is important to do what you can. Read the rest of this entry »

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