Knoxville Short Sale Category

Knoxville Short Sale Question: Does Life Go On After A Short Sale?

imagesIn our Ask the Expert Section, we recently received a question from Alex, he asks, "Two years ago, I got into a very difficult situation after my hours were cut at work. I began incurring quite a bit of debt to try and make ends meet, but I could never quite make things work. I stopped making payments on my Knoxville home a year and a half ago, after trying (and failing) to modify my loan. With foreclosure looming, I started a short sale as a last ditch effort. I'm scared about what implications this may have after the sale is completed. Does life go on after a Knoxville short sale?" Alex, first let me say that I'm very sorry to hear about your situation. There are many Tennessee residents who have been in very similar situations are some form of hardship has made it difficult for them to pay their mortgage. So, you're not alone in your situation, there are many others that have gone through a similar situations. When it comes to facing foreclosure on your Tennessee home, it can be very scary and overwhelming situation, making it hard to know where to turn. The good thing is that you've pursued a short sale. As I typically explain it to my clients, a short sale is the best way out of an already bad situation. If foreclosure is inevitable, a short sale is a step you can take to lessen the blow on your daily life. Read the rest of this entry »

Why Knoxville Short Sales Are Win-Win For Everyone

thumbs_up_colourKnoxville short sales are a common way for underwater homeowners to avoid foreclosure. While Knoxville short sales can be extremely beneficial to sellers, they are also a win-win for all other parties involved, and here is why. Advantages For Seller A short sale allows a distressed homeowner to get out of a very difficult situation. When foreclosure is inevitable, a short sale allows a homeowner a way out of a tough situation with significantly less consequences. While a short sale will do damage to your credit, it is not nearly as bad as going through foreclosure. A short sale gives the seller some time to get back on their feet and in most cases, they are able to walk away debt free. Advantages For The Buyer The buyer in a Knoxville short sale can benefit from a deeply discounted price. For a buyer that is looking to get a home at a discounted price, a short sale offers an alternative to buying a foreclosure. Typically, short sales tend to be in better condition than foreclosures. Read the rest of this entry »

Buying A Knoxville Short Sale? 3 Questions To Ask The List Agent

Sold SignFor any buyer looking to buy a Knoxville short sale, it can be important to get some information from the list agent prior to making an offer. These questions will help you determine if the Knoxville short sale agent is competent so you don't end up waiting for a short sale that will never closer. Here are 3 questions to ask the list agent prior to buying a Knoxville short sale. How Many Short Sales Have You Done? Knoxville short sales can be tricky transactions. They are not for every Realtor, which  is why it is important that every buyer ask this question. If an agent has only done a handful of short sales, the odds for short sale success are not necessarily in your favor. After all, you don't want to wait 4 or more months on a short sale that will never close. Read the rest of this entry »

Knoxville Short Sale Question: How It Will Influence My Ability To Buy?

mortgage-cash.ju.topIn our Ask the Expert Section, we recently received a question from Jack, he asks, "I just finished a short sale on my Knoxville home last year. I've been working really hard to rebuild my credit and save up some money. My family and I are sick of living in a rental place and would like to be able to buy another house as soon as possible. How long after completing a short sale will we be able to buy another Knoxville home?" It is possible to buy a Knoxville home after completing a short sale. How long it takes to buy another home depends on a few different things: Credit Score. One large thing that will influence your ability to buy another Knoxville home is your credit score. How much damage was done to your credit depends on how long you missed payments, if you had other delinquent accounts, and how your short sale was reported to the credit bureaus. After going through a short sale, it is important to see where your credit ended up. To help rebuild your credit, it is important to pay down debt, use your credit limits responsibly, and make payments on time. Your credit score will need to rebound in order to buy another Knoxville home. Wait Time Associated With The Loan Program. Every loan program is a little different, which is why their wait times after completing a short sale are a little different. It is generally anywhere from 3 to 5 years depending on the situation, but can be as early as 1 year with the help of the "FHA Back To Work Program," where homeowners can buy with as little as 3.5% down. Be sure to check with a loan professional to see what programs you may qualify for to buy another Knoxville home after a short sale. Read the rest of this entry »

Knoxville Short Sale Question: Do I Need Approval To List My Home?

Knoxville Home Saver Ask The ExpertIn our Ask the Expert Section, we recently received a question from Charlotte, she asks, “I've been in a difficult situation for a little over a year. One of my kids got really sick and I had to take some time off of work. On top of the medical bills, it has been very difficult to continue making payments on my Knoxville home. I've tried to modify my loan, but my lender has been no help. In order to do a Knoxville short sale on my home, do I need to have an approved short sale?" Charlotte, you are not required to have lender approval prior to putting your home on the market as a Knoxville short sale. An experienced Knoxville short sale agent should be able to help determine if a Knoxville short sale is an option for you. Once you've decided to do a short sale on your home, your agent will collect the necessary paperwork and submit it to your lender. Some lenders require it to be done with an offer on the home, while others are willing to review it prior to getting an offer. It just kind of depends. Generally, a lender will not even want to discuss a short sale until an offer has been received and all of the necessary paperwork has been submitted. Read the rest of this entry »

Knoxville Short Sale Question: Can I Short Sale If I Have Good Income?

knoxvilleshortsalehelpIn our Ask the Expert Section, we recently received a question from Kim, she asks, “My husband and I were transferred a few years ago. We kept our Knoxville home as an investment property. Unfortunately, our renters stopped paying rent and did their fair share of damage to our home. We couldn't sell the home for what we still owe on the property. We have enough income and savings to keep paying the mortgage, it just is very painful every month knowing we're throwing away money. Can we still do a short sale if we have the income to keep making payments on our Knoxville home?" With a Knoxville short sale, there is no definitive formula for short sale approval. There can be differences between what one lender will approve and what another will not approve. There is no rhyme or reason why some get approved and others don't. With that being said, I have seen a few situations very similar to yours. In some cases, the lender will approve the short sale with no missed payments. Yet, in others a lender will not consider the short sale since the owner is still able to make payments. So, it is really hard to say what your lender will do. Read the rest of this entry »

Knoxville Short Sales – Is There Hope For The Mortgage Debt Forgiveness Act?

knoxvilleloanmodificationOver the past 7 years, the Mortgage Debt Forgiveness Act has played a critical role in the lives of Knoxville homeowners who have gone through foreclosure or short sale. Since debt that is associated with a foreclosure or short sale is considered to be income, homeowners would have been required to pay income taxes on the forgiven debt. Luckily, with the help of the Mortgage Debt Forgiveness Act, those that had gone through a foreclosure or short sale had not been required to pay income taxes on that forgiven income. Unfortunately, for those who will go through foreclosure or do a short sale this year, the act ended on January 31st, 2013. So, what does the future hold for those Knoxville homeowners that had not yet completed a short sale or gone through foreclosure? Luckily, there is still a little bit of hope that the act will be renewed sometime this year. The head of the Senate Finance Committee, Senator Ron Wyden, of Oregon, is supposed to make tax reform a large priority as he takes over this year. One of those areas he is expected to address is the Mortgage Debt Forgiveness Act. If the act is renewed sometime this year, Congress can put them back in the tax code retroactively, so that anyone that goes through foreclosure or short sale sale this year will not be required to pay income taxes on the forgiven debt. Read the rest of this entry »

Why Knoxville Short Sales Aren’t Always Short

tortoiseThere is nothing short about Knoxville short sales. They can take anywhere from 4 to 6 months or more to complete.  Despite many policy and program changes, short sales haven't gotten much quicker. So, why is it that Knoxville short sales aren't always so short? First, it is important to understand what exactly Knoxville short sales entail. A short sale occurs when a homeowners owes more on their Knoxville home than it is worth. When that is the case, a homeowner asks a lender to accept less than the amount owed on a home. Since lenders are taking a loss with a Knoxville short sale, it can take time to get them approved and they must examine every situation. Knoxville short sales can be slowed for a number of reasons. One large reason short sales can stall is an inexperienced agent. If an agent doesn't have experience in negotiating Knoxville short sales, a short sale can be doomed from the beginning. Lack of follow up, incomplete short sale packages, among other things can slow down the process. Read the rest of this entry »

Knoxville Short Sale Question: Can I Sell To My Tenant?

mortgage-cash.ju.topIn our Ask the Expert Section, we recently received a question from Marc, he asks, “I'm in a very difficult situation when my Knoxville home. I owe $170K on a home I bought back in 2007, and in its current condition it would sell for roughly $140K. I haven't missed any payments and I was able to find a decent renter to cover the mortgage, but this isn't a long term solution for my Knoxville home. It needs some work and I know I won't keep the renter forever. My renter has expressed interest in buying my Knoxville home. Can I do a short sale and sell my Knoxville home to my tenant?" Marc, as far as doing a short sale on your Knoxville home, it is definitely a possibility your lender will consider your situation. Unfortunately, for Knoxville short sales, lenders like to see that every transaction is done at "arms length." This means that neither the buyer or seller had any relationship to one another prior to the transaction. While I can't say that your lender will deny this transaction, it is highly likely that your lender wouldn't like this. When lenders approve short sales, they like to see that a short sale is the last ditch effort and that the seller is not benefiting anyway from the sale. If the buyer or seller previously knew each other, that can raise some red flags to the lender. In addition, keeping this information from the lender could result in legal action against both parties, since most lenders require both parties to sign an affidavit acknowledging that the transaction is truly at "arms length." Read the rest of this entry »

Knoxville Short Sales – Why Lenders Will Consider Short Sales

Stop ForeclosureFor many Knoxville homeowners facing foreclosure, it can be hard to imagine why a lender would consider approving a short sale. In recent years, more and more lenders have been embracing Knoxville short sales, and here is why. Knoxville Foreclosures Take Time One big reason that lenders will consider doing a Knoxville short sale is due to the fact that foreclosures take time. The foreclosure process itself can take a great deal of time and there is a great deal of paperwork involved. Even once the home goes into foreclosure, it can take months before the home finally hits the market. Knoxville Short Sales Allow Lenders To Get Paid Quicker Knoxville short sales allow lenders to get paid quicker. Lenders receive payment for the home once the sale has closed. In comparison, there is no saying how quickly a lender will get paid when a home goes into foreclosure. Read the rest of this entry »

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