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 Sales – What’s In A Short Sale Approval Letter?

approvedKnoxville short sales take great deal of time and patience to complete. All the paper work, phone calls, and effort is put forth for one common goal: the short sale approval letter. So, what exactly is included in a Knoxville short sale approval letter? And, when it is received, what does it mean for you as the homeowner? The short sale approval letter spells out exactly what the lender requires from the seller in order for the short sale to be successfully completed. Generally, they lay out the following terms: an acceptable sales prices, the max commissions allowed, maximum closing costs, minimum proceeds to the seller (if any), and the close date (or when the sale must close by). In the case of some short sales, it will also include a release of future liabilities, that is that your lender is waving the right to pursue you for a deficiency judgement. If the release of liability is not address, then your lender could still potentially pursue you for what is owed. Read the rest of this entry »

Why Honesty Is Key When Doing A Knoxville Short Sale

Knoxville Short Sale Deal ClosesKnoxville short sales can be tricky transactions. As a seller, it is extremely important to be upfront with your realtor and lender throughout the short sale process. Any little lie or forgotten detail has the potential to cause a big hiccup in the whole short sale process. Here is why it is so important to be honest when doing a Knoxville short sale. First, it is important to understand the scrutiny that Knoxville short sales are put under before they are approved. Bank statements, pay stubs, among other things are examined throughout the process. It is just important to understand that if you're hiding anything, it will most likely be found out, which is why it is just important to be upfront about it Being honest and upfront with your realtor from the beginning will only help your Knoxville short sale to succeed. Your realtor is there to  work with your lender to get your Knoxville short sale approved. Any pertinent information that you are able to provide them will only help. The more they know, they better they will be able to assist you. 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 Sales – Fannie Mae To Negotiate Directly With Agents

knoxvilleshortsalescanbeslowLast week, Fannie Mae announced they will be implementing a new system to work directly with short sale agents.  This is great news for Knoxville short sales because it puts agents in direct communication with Fannie Mae to hopefully help alleviate some of the problems Knoxville short sales run into. In the past, Knoxville short sale agents would negotiate the short sale with the loan servicer.  Then, the loan servicer would work with Fannie Mae to get approval, oftentimes being a unproductive middle man. The system of negotiating short sales through a servicer would often cause Knoxville short sales to stall unnecessarily, due to pricing disputes or delays caused by the servicer. In February 2013, Fannie Mae launched a portal for agents to communicate directly with them when they ran into problems with a loan servicer. Through the portal, agents were able to escalate a short sale file if they felt that that a short sale had stalled unnecessarily. Agents were also able to log onto the portal prior to putting a Knoxville home on the market to get a recommended list price for the short sale. In the coming months, Fannie Mae has announced that the portal will take things a step further, and allow agent Read the rest of this entry »

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 »

Why Knoxville Short Sales Are Good For Knoxville Neighborhoods

skd273191sdcKnoxville short sales are good for a lot of reasons. They're good for Knoxville homeowners facing foreclosure, lenders, and buyers. In addition, Knoxville short sale are also good for Knoxville neighborhoods, and here is why. Imagine this. A Knoxville home that has sat vacant for over 3 years.  The yard is overgrown with weeds. The air conditioning unit is missing. The inside is desolate with the counter tops and appliances are missing. The carpet is stained and beat up. It looks more like something out of a horror story than a home you'd want to live in. That's what a foreclosure can look like. Some Knoxville foreclosures are worse, some are better. Regardless, Knoxville foreclosures are not good for anyone, including Knoxville neighborhoods. Now imagine a Knoxville home that could use some work. The appliances need to be replaced. It could use a new roof. The yard it mowed and it is generally well maintained, just comes with a few problems. Read the rest of this entry »

Knoxville Short Sale Question – When Can I Buy A Home Again?

thoughtful-pen-writing-24581037-2560-1702In our Ask the Expert Section, we recently received a question from Danny, he asks, "I completed a short sale on my Knoxville home six months ago. After losing my job, it was very difficult to keep paying my mortgage. With foreclosure being inevitable, I decided my best option was to complete a Knoxville short sale. We were able to walk away debt free from our Knoxville home. I've now found steady employment and am ready to buy a house again. How soon can I buy a Knoxville home?" Danny, I'm very sorry to hear about your situation. The good news is that buying a Knoxville home may not be as far off as you may imagine. With the help of the FHA "Back To Work Program," you can buy a home in as little as a year with as little as 3.5% down. In order to qualify for this program, Knoxville homeowners must meet the following requirements: -First, you must have experienced an "economic event," which includes any of the following events: short sale, deed-in-lieu of foreclosure, foreclosure, Chapter 7 bankruptcy, Chapter 13 bankruptcy, loan modification, or forbearance agreement. Read the rest of this entry »

The Knoxville Short Sale Process From Beginning To End

mental-strength-checklistFor many Knoxville homeowners facing foreclosure on their Knoxville home, one of the scariest parts of the whole situation is the unknown of what may happen in the future. A Knoxville short sale is a common way to avoid foreclosure, but the process itself can be a bit of a mystery to most homeowners. Here is a breakdown on the process from beginning to end. The short sale process can start months before a Knoxville homeowner even decides to do a short sale. The process starts after a few missed mortgage payments, when the homeowner finds themselves in a situation they can't get out of. At that point, a Knoxville homeowner must take action to avoid foreclosure, otherwise foreclosure will be inevitable. After a Knoxville homeowner has reached the point where foreclosure is inevitable, a homeowner usually will meet with one or two short sale agents to find more about the process. At that point, the lender is contacted by the short sale agent to notify the lender that the homeowner would like to pursue a short sale. At that time as well, the agent would submit an authorization signed by the seller that will allow the agent to work with the lender on behalf of the seller. Next, all of the short sale paperwork is submitted to the lender. The paperwork includes a wide range of information including financial statements, a hardship letter, a settlement statement showing the payoff to the lender, among other things. Depending on the situation, if the Knoxville home has an offer on it, the purchase contact would be submitted at this point as well. 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 »

3 Things To Do After Completing A Knoxville Short Sale

Knoxville Short Sales can help You get your life backIf you've recently completed a short sale on your Knoxville home, life after a short sale is not as doomed as you may think. While it may take some time to recover from a short sale, life will go on sooner than you may think. Here are 3 essential things that every homeowner must do after completing a Knoxville short sale. One thing that is extremely important after completing a short sale is to make sure that a short sale was reported properly on your credit report. A short sale approval letter will outline how a lender is planning on reporting the sale to the credit bureaus. Then, request a copy of your credit report from all of the three major bureaus to ensure the sale was reported properly. If the short sale was reported incorrectly, you can dispute it with the credit bureaus by sending them a copy of the short sale approval letter. Another important thing to manage after your short sale is your credit. To help raise your credit score, be sure to pay down any existing debt and manage your debt responsibly. It is also extremely important that you make all payments on time. Finally, be leery of opening any new credit accounts if at all possible. Read the rest of this entry »

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