Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

865-675-8326
RE/MAX Preferred Properties
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Knoxville Loan Modifications Category

Knoxville Short Sale Question – What If I Have Other Liens On My Home?

knoxvilleshortsalewithtwomortgagesIn our Ask the Expert Section, we recently received a question from Todd, he asks, “I want to do a short sale on my Knoxville home, but am afraid my lender will not approve the sale. In addition to my mortgage, I also have a judgement filed against me from some medical bills that has attached to my property. Can I still do a short sale on my Knoxville home if there are other liens on the property?" IRS Tax liens, homeowner's association liens, and judgements that attach to a property are all things that can make a Knoxville short sales difficult. The main reason lenders are not willing to payoff other non-mortgage related liens is due to the fact they're already selling the home at a loss. Other liens can take a cut out of the proceeds, which is why most lenders will not approve paying of those liens with the short sale proceeds. With that being said, every lender is different and it can always be difficult to 100% say what they will and will not do. Read the rest of this entry »

Knoxville Short Sales & Foreclosures – HARP, HAMP Extended Through 2016

mha-logoThe Federal Housing Finance Agency (FHFA) recently extended the Home Affordable Refinance Program (HARP) and the Home Affordable Modification Program (HAMP) though 2016. This is great news for Knoxville homeowners who are facing foreclosure on their Knoxville home or who are having trouble making mortgage payments on their Knoxville home. Read on to find out more about these programs. Read the rest of this entry »

Knoxville Short Sale Question – Is Foreclosure Now The Better Option?

house-valueIn our Ask the Expert Section, we recently received a question from Dylan, he asks, "I'm currently in a difficult situation. I've been struggling to make the mortgage payments on my Knoxville home. At this point, I'm either going to do a short sale or end up in foreclosure. With the Mortgage Debt Forgiveness Act not yet extended, I'm unsure if doing a short sale is even worth the effort. Is foreclosure a better option now?" It can be an extremely tough decision to decide between a Knoxville short sale and going through foreclosure. Unfortunately, there is no easy answer to that question. It is largely personal and you'll need to decide what option is best for you. If you have questions about the possible tax implications, it is always best to talk to a tax professional or attorney. With that being said, I wouldn't necessarily base your decision on what to do solely on what happens with the Mortgage Debt Forgiveness Act. It is hard to say whether or not it will be passed this year to retroactively put the law back into effect, meaning that anyone who has to do a short sale will not have to pay taxes on the income. 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 »

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 »

3 Other Ways To Avoid Foreclosure On Your Knoxville Home

harpKnoxville homeowners facing foreclosure have a few different ways to avoid foreclosure. While short sales and loan modifications are often two of the more common ways to avoid foreclosure, homeowners do have a few other lesser known options. If you're facing foreclosure and don't like the idea of a short sale or loan mod, read on to find out more about these three alternatives to avoid foreclosure. Forbearance Agreement A forbearance agreement involves negotiating with your lender to come up with a repayment plan to become current on your Knoxville home again. With a forbearance agreement, the lender agrees to set up a payment plan with the homeowner. Over a certain period of time determined by the lender (usually 6 to 12 months), the homeowner agrees to make increased payments on their home to become current on their mortgage again.  A forbearance agreement can be helpful to Knoxville homeowners who experienced temporary hardship and now have sufficient funds to become current on their loan. Read the rest of this entry »

Knoxville Loan Modification Question – Can It Save My Knoxville Home?

loan-modificationIn our Ask the Expert Section, we recently received a question from Rudy, he asks, “My wife and I hit some difficult times awhile back. In between a pay cut at work and a few other high bills, it was difficult to make payments on our Knoxville home. We want to stay in our Knoxville home and now have the  money to continue making payments. I've heard about loan modifications. Can a Knoxville loan modification save my Knoxville home?" Rudy, you have a few different options to avoid foreclosure on your Knoxville home. A loan modification is one way that you could avoid foreclosure and stay in your Knoxville home. A Knoxville loan modification changes the terms on your loan. There are three different types of loan modifications.  A principal reduction reduces the amount that is owed your home. A rate reduction reduces the interest rate. A capitalization reduction takes what is past due and add it on the principal amount. Principal reductions are the most common (and successful) loan modifications. Read the rest of this entry »

Knoxville Loan Mods – HAMP Helps More Than 1.8M Homeowners

knoxvilleloanmodificationA Knoxville loan modification is one way to avoid foreclosure on your Knoxville home. The Home Affordable Modification Program is one of the programs that is available to Knoxville homeowners to help modify their loans. So ,what exactly is HAMP? And, can it help you save your Knoxville home? The Home Affordable Modification Program was started back in 2009. The latest housing scorecard report shows that HAMP has helped over 1.8 million homeowners. The program has helped save homeowners on average $547 per month with an average total monthly savings of $22.9 billion per month nationally. At least, 1.2 million American homeowners have helped modify their loans permanently. Read the rest of this entry »

When Is A Knoxville Loan Modification Not A Good Option?

knoxvilleshortsalequestionsFor Knoxville homeowners facing foreclosure, a loan modification can seem like a good option. A homeowner can remain in their Knoxville home and get back on track with their payments.  Unfortunately, a large percent of loan modifications fail; with a recent quarterly report from Congress showing 27% of all completed loan mods end up in redefault. While a Knoxville loan modification can help you avoid foreclosure, it is not always the best solution for everyone. If you're thinking about completing a loan modification, here are a few situations where a loan modification is not a good solution. You're Deeply Underwater In some cases where a Knoxville homeowner is deeply underwater, a loan modification isn't always the best option. It's more of a band-aid for a bullet hole than a foreclosure solution. While a loan mod can make you're payments more bearable, it doesn't change the fact that you owe more on your home than it is worth. You're Income Isn't Stable Obviously, for a loan modification to be successful, you need to have stable income. There is no use jumping through all of the hoops to save your Knoxville home if you won't be able to keep making payments. 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 »

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