Solving the Knoxville Foreclosure Crisis
One Homeowner at a Time

Rick Smenner

RE/MAX Preferred Properties
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Knoxville Short Sale Category

Knoxville Short Sale Question: Am I Eligible To Do A Short Sale?

knoxvilleshortsaleversusforeclosureIn our Ask the Expert Section, we recently received a question from Nick, he asks, "I owe much more on my Knoxville home than it is worth. I've experienced some financial difficulties over the past year, which has made it difficult for me to continue paying my mortgage. I owe much more on my Knoxville home than it will be able to sell for. How do I know if I'm eligible to do a short sale on my Knoxville home?" Knoxville short sales are ever evolving. The exact short sale eligibility requirements can very from lender to lender. Here are a few general qualifications that any seller must have to qualify for a Knoxville short sale. Hardship. One big thing that lenders will look at to determine if you are eligible for a short sale is financial hardship. They will want to see that you are in a difficult situation which makes paying your mortgage payment difficult. There can be many reasons for financial hardship including: job loss, relocation, death in the family, decrease in income, medical bills, military service, among many other things. Underwater Home. Another thing that your lender will want to see is that you owe more on your home than it is worth, which is why you are being forced to sell you home for less than it is worth. 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 Short Sale Question: What Happens If The Buyer Walks?

Knoxville Short Sales Move SlowlyIn our Ask the Expert Section, we recently received a question from Nolan, he asks, "I've been in the process of doing a short sale on my Knoxville home for sometime now. It has been four months and counting, and our Knoxville short sale shows no signs of closing anytime soon. The buyer that has put an offer in on our house has threatened to walk if we don't close in the next 30 days. Will our short sale been doomed if the buyer walks?" Knoxville short sales can be unpredictable, that is the nature of the beast. Unfortunately, for some buyers, the waiting can be enough to walk away from the sale altogether. This is why it is so important that short sale buyers are properly screened and informed before submitting an offer on a short sale. Any potential buyer needs to be aware the closing is all dependent on the seller's lender and also the buyer needs to be able to close within 30 days of short sale approval. Read the rest of this entry »

Mortgage Debt Forgiveness Still Needed For Knoxville Homeowners

knoxvilleloanmodificationUnfortunately, for many Knoxville homeowners facing foreclosure, the Mortgage Forgiveness Debt Relief Act expired on December 31, 2013. For any Knoxville homeowner that experiences pre-foreclosure or foreclosure this year will be required to pay income taxes on the forgiven debt, unless of course, the act is extended. Here are three reasons why the Mortgage Forgiveness Debt Relief Act needs to be extended. One large reason that the act needs to be extended due to the amount of  homeowners that are facing foreclosure or that are deeply underwater on their home. According to recent data released by RealtyTrac, there are still 9.3 million Americans deeply underwater on their mortgages. With many homeowners still underwater on their mortgages, there are still people facing foreclosure in Tennessee, all of which still would benefit from the Mortgage Debt Forgiveness Act. Not to mention, with how notorious short sales are for dragging on, there were many homeowners that started short sales in 2013, only to have them drag on through the end of the year. Read the rest of this entry »

Knoxville Foreclosure Question: How Will I Know If My Lender Is Foreclosing?

In our Ask the Expert Section, we recently received a question from Mikey, he asks, “I got laid off at work awhile ago and had to stop making payments on my Knoxville home. I've tried to work it out with my lender to save my Knoxville home, but haven't made any progress. I'm afrKnoxville Home Saver Loan Mod Helpaid foreclosure is inevitable. How will I know my lender is foreclosing on me?" Mikey, the foreclosure process in Tennessee can happen very quickly. Technically, your lender can start the foreclosure process after one missed payment, though, it is highly unlikely that they will start the foreclosure process after one missed payment. After one or more missed payments, you will receive notification from your lender that you have missed payments. Oftentimes, after that, you will also receive phone calls from debt collectors requesting.  These tactics are meant to scare you, but do not officially mean the foreclosure process in Tennessee has started. Read the rest of this entry »

Knoxville Foreclosures – Is Strategic Default Really Strategic?

Stop Knoxville ForeclosuresFacing foreclosure on your Knoxville home can be a very scary and overwhelming prospect. For many homeowners, strategic default can be an appealing option. Strategic default is when a homeowner decides to stop making payments on the home, even if they have the money to continue making payments. For Knoxville homeowners facing foreclosure, is strategic default really that strategic? For most Tennessee homeowners, the decision to stop making payments is not one they come to quickly. Perhaps, they've tried modifying their loan, working multiple jobs, or pulling money from savings; regardless, the homeowner decides they best want to walk away from the situation. While strategic default can sometimes feel like the easier option, there are other ways to make the best out of a bad situation. One thing to consider is pursuing a Knoxville short sale. All short sales are done at no cost to the homeowner. The homeowner may even be eligible to receive relocation benefits. In addition, short sales allows homeowners to get back on their feet and makes it possible for them to buy a home again sooner than if they went through foreclosure. Read the rest of this entry »

5 Mistakes Inexperience Short Sale Agents Make And Why They Matter

failKnoxville short sales are not for the faint of heart, particularly for short sale agents. Short sales require a whole lot of patience, persistence, and experience to successfully get them closed, which is why they're not always suited for your average agent. An inexperienced agent can ruin a short sale by making simple mistakes. Here are a few mistakes the inexperienced short sale agents make and why they matter in the short sale process. Knoxville Short Sale Mistake #1 - Failing To Get All The Information From The Seller From the very beginning, it is important that the short sale agent have all the information from the seller. For many inexperienced agents, it can be very easy to overlook some very simple questions like: has the seller filed bankruptcy? is there a foreclosure date set? is there a second mortgage? is the seller behind on HOA dues? have they tried doing a loan mod? All of these things can be significant to the short sale process. By getting all of the pertinent information from the seller, an agent can better assess the situation and explain what options the seller may have to avoid foreclosure. It is important to have all of this information from the beginning to ensure any potential roadblocks can be identified form the start. Knoxville Short Sale Mistake #2 - Failing To Get All The Paperwork From The Beginning Messy or incomplete short sale paperwork is a common rookie mistake. If a lender is going to accept more than is owed on the home, they want to be able to see all of the facts and have all of the paperwork. Many files will not even be considered until the file is complete. Many inexperienced agents do not know the paperwork, nor understand the importance of having it all as soon as possible. One of the most basic things that can be done for any short sale file is to ensure all of the paperwork gets done in a timely manner. It gives the file the best chance at closing quickly and successfully. Read the rest of this entry »

Knoxville Short Sale Question: Will I Pay Taxes On My Forgiven Debt?

taxIn our Ask the Expert Section, we recently received a question from Colin, he asks, “I want to do a short sale on my Knoxville home, but am afraid of the consequences. I've heard that I will have to pay income taxes on my forgiven debt. I owe probably $50,000 more on my Knoxville home than it is worth, and could not afford to pay any taxes on the forgiven debt. If I do a short sale, will I have to pay taxes on my forgiven debt?" Back in 2007, the Mortgage Debt Forgiveness Act was created to helped homeowners that had been through foreclosure or pre-foreclosure sale (short sale or deed-in-lieu of foreclosure). Under the Act, any homeowner that went through foreclosure or a pre-foreclosure sale on their Tennessee home would not be required to pay taxes on their forgiven income, if the home was their primary residence for the last 3 out of 5 years. The rule applies to up to $1 million for those filing his/her taxes as an individual and  up to $2 million for those filing their taxes jointly. Read the rest of this entry »

Knoxville Short Sale Question: Can I Profit From A Short Sale?

short_sale_vs_foreclosure-150x150In our Ask the Expert Section, we recently received a question from Juan, he asks, “I've lived in my Knoxville home since 2007. Since I bought it, I haven't been making as much money at work. I've also seen an increase in some other bills, which has made it difficult to continue paying my mortgage. I know my home isn't worth what I bought it for, and it needs a bit of work. Is there any way I can do a short sale and profit?" Juan, unfortunately, the way short sales work there really is no way to walk away with a profit. A Knoxville short sale occurs when a homeowners owes more on a home than its current market value. When that is the case, we negotiate with the mortgage company to accept less than is owed on the home. In other words, the home is sold "short," thus the reason they are called a short sale. Read the rest of this entry »

When Is It Time To Consider A Short Sale On Your Knoxville Home?

Knoxville Short SaleFacing foreclosure on your Knoxville home can be a very scare thing. After missing a few payments on your Knoxville home, it can be difficult to decide if and when it is time to take action to avoid foreclosure. Should you try to keep your home and modify your loan? If there are no options to save your Knoxville home, at what point should you consider a Knoxville short sale When It's Time To Consider A Short Sale Knoxville short sales are often seen as the point of no return. You've tried to make paying your mortgage possible, but you're at the point where it is just not possible anymore. Or, you're so underwater on your home, it'll take years to finally break even on your home. Or, you're at the point where you will inevitably begin missing payments in the future.  More or less, the lender wants to see that a short sale is the only option to avoid foreclosure. When To List Your Home For many people, it can be difficult to finally decide to do a short sale.  For many, they hope some other solution will come along where they can avoid foreclosure and still stay in their home. If you get to a point of no return, it is wise to go ahead and get the short sale process started. Foreclosure can happen very quickly in Tennessee, which is why it is important to get the ball rolling as soon as possible. How To Get The Process Started Once you've determined a short sale is a good option for you. It is best to find a short sale agent and get the process started. They will know what paperwork you need to get the process started and will be able to advise you on what the process is like. Are you thinking about do a short sale on your Knoxville home? If so, please do not hesitate to give my team a call at 865-696-9002 or send an email to [email protected]. We specialize in helping Knoxville homeowners avoid foreclosure and helping them understand their options. Foreclosure isn’t the only option, give us a call today to hear what you’re options are.

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