Knoxville Tennessee Real Estate Blog

I know foreclosure is an unpleasant topic but since Tennessee is number 11 nationwide in numbers of foreclosures, it certainly seems like a subject that merits some discussion.

If anyone is behind on their mortgage payments or have maybe received a foreclosure notice, you still have some legal options to solve, prolong, or even fix your financial difficulties.

Here are some ideas to consider:

1. Restructure your loan. With this option you try to negotiate with your lender to come up with a payment plan to get you caught up and possibly add any late fees and charges to your current loan to soften that burden for now.
2. Reinstatement. This is simply catching up all your late payments plus associated fees and charges. Since most people facing foreclosure in the first place are having financial problems this is not an option for most.
3. Refinance your existing loan. If you have a large amount of equity in your home it might be worthwhile to talk with your lender about refinancing your existing loan to get you caught up and hopefully make your payment a bit more bearable.
4. Sell your home. If your home is in salable condition, maybe selling now to avoid foreclosure and moving to something a bit more affordable until things get better could be a consideration.
5. Do a short sale. In a short sale your lender agrees to take less than the principal amount of your mortgage if you sell your house. Not surprisingly most lenders are not too excited about this option but since it costs them so much to foreclosure and they usually sell the homes at a loss, a sort sale would be something to run by them.
6. Give them the deed in lieu of foreclosure. This is actually a “friendly foreclosure” if there is such a thing. You simply sign the house over to the lender and give them the keys. The effect on your credit is the same a a bankruptcy but it could save you from bankruptcy which should always be the final option.
7. Bankruptcy. This is the most extreme solution and should only be undertaken with good legal guidance and under dire circumstances. This will not stop a foreclosure but merely slow it down for a few months. Trying to negotiate a short sale would be a better option than both this and giving a deed in lieu of foreclosure.

If you’re A Knoxville, Farragut, or Knox County resident and are having any difficulties making your mortgage payments or have maybe even received a notice of foreclosure I would be happy to sit down with you and go over all your options. No cost, no obligation.

It’s easier than you might think.

1. Find a qualified Buyer’s Representative: Since most of us only buy real estate a few times in their lifetime doesn’t it make sense to have a Buyer’s Representative to provide complete and fair representation for you? The sellers already have a listing agent to look out for their best interests. As an Accredited Buyer Representative (ABR), I’m qualified to consult with you about buying and represent you.
2. Assess your credit and finances: Any lender is going to check your credit history when you apply for a loan. You can give yourself a heads up on any potential stumbling blocks by getting a copy of your credit report. Federal law requires each of the 3 major credit bureaus to give you a free credit report every 12 months. The big three are: Equifax, Experian, and Trans Union.
3. Assess your wants and needs: Both Knoxville and Farragut Tennessee have many different styles of homes. Determine what features are important to you in your new Knoxville or Farragut home; price, bedrooms, style of house, size, neighborhood, etc. Then determine what you need versus what you want, i.e. must haves like a fireplace versus niceties like a pool.
4. Shop for a home: Knoxville & Farragut both have tons of different neighborhoods; which one is best for you? Quality of schools, neighborhood profiles, household data, and factors like these need to be considering.
5. Negotiate price and terms: Once you’ve found a home you want to buy the next step is making the offer. Important considerations are, your finances, tax situation, legal obligations, and others. When you consider that you’re going to be living with your decisions for many years, just how big a deal a home purchase is becomes obvious.
6. Obtain a mortgage: When selecting a lender you need to obtain a mortgage loan with terms most favorable to you. Debbie Nieto, a highly professional and experienced banker will be happy to answer any of your mortgage questions.
7. Prepare for the closing: Once you’ve successfully found your dream home, negotiated the best price and terms for you, and been approved for your mortgage you need to get ready for the closing; that’s when you get the keys to your new home. You’ll need homeowner’s insurance, title examination, a thorough home inspection, a termite inspection, and lots more details to make sure there are no ’surprises’ after the closing.
8. Close: That’s the actual and legal transfer of ownership of your new home from the sellers to you. You’ll need to set a closing date, review your closing documents, understand all your closing costs, and lots more technical and legal details to ensure you get a valid title & documentation.
9. Move: Once you’re found your home and set a closing date it’s time to prepare to move into your new home. Lots of my buyer clients have found that having a checklist of things to do is very helpful. You’ll need to arrange for homeowner’s insurance, utilities, change of address for your mail, pack, and of course, move.
10. Celebrate! Yeah, you made it; now you’re a happy Knoxville or Farragut homeowner; it’s time to party! Homeownership brings many personal and financial benefits to you such as pride of ownership, personal and financial growth, security, and many more.

If you’re thinking of taking that next step please call or email me for a free copy of my Homebuyer’s Toolkit which goes into much more detail about the 10 steps outlined above.

As an Accredited Buyer’s Representative (ABR) I am fully qualified to be your guide along the road to homeownership.

You can get a sneak preview of lots of Knoxville and Farragut homes for sale at www.KnoxvilleHomeCenter.com and remember, there is no such thing as a dumb question, only the ones you did not ask.

Happy homeownership, east Tennessee is a great place to live.
Jim

That’s sort of a hard comparison to make but follow this train of thought and see if it makes sense to you.

In the 1st quarter of 2005 the average price of a 3 bedroom home in Knoxville, Tennessee was $141,700. In the 1st quarter of 2008 the average price of that same 3 bedroom home has increased to $158,300.

Assuming a buyer put 20% down on the 2005 home that would have been $28,340.

If you took the same $28,340 and bought a CD at a local bank or credit union at the best rate I’ve found, which is 3.6% for a $100,000 CD or above (I’m giving the higher number to the CD) you would have earned $3,172 in interest.

$$$$$$$$$$

Your $141,700 house you bought in early 2005 would have now been worth $158,300 which means you would have $16,600 in equity AND you would have been enjoying living in your own Knoxville home the past 3 years.

So which is the best deal; $3,172 interest (taxable by the way) on a CD and no house or $16,600 in equity and a new, 3 bedroom home for you and your family to enjoy?

PS, contrary to all the “Doom & Gloom” stories you’re bombarded with daily on the news; not all the US real estate markets are losing value and undergoing massive foreclosures.

In fact around many cities the housing market is moving along pretty well; Knoxville, Tennessee is one of those cities.

We’ve never enjoyed (if that is the right word) 10% appreciation monthly in home prices like southern California but we’ve also never experienced 50% price and value declines either.

Here’s a great place to look for your own 3 bedroom home to live in and probably enjoy an increase in value over the next 3 years and beyond, www.KnoxvilleHomeCenter.com

Alright, spring fever finally got the best of me this past Friday. Two of my hiking buddies and I took the day off and went to the woods; no cell phones, no computers, and very, very few other people.

It was a great day for a hike. We drove over to the Cataloochee Valley on the North Carolina side of the Park and hiked the 7.5 mile long Boogerman Trail named for a former local Valley resident whose real name was Robert Palmer. There are several stories about how Mr. Palmer got the nickname “Booger” but the most commonly accepted one came from his early school days.

The teacher was going around the 3rd grade class asking each pupil what they wanted to be when they great up and Robert said that he wanted to be “the Boogerman” and the nickname stuck.

this is the kind of photo you get when you only set your camera timer for 2 seconds instead of the 10 you intended. Oops!

Trying again with a 10 second window to get into the photo, this one turned out a little better.

Don Anderson, Jim Lee, & Bill Furlong ready to enjoy a day in the back country.

We could not have bought better weather. It was in the mid 60s, big fluffy clouds overhead, and a light breeze; perfect spring hiking weather in east Tennessee.

The Boogerman Trail is home to some spectacular old growth Poplar forests. We got on the trail about 10:00 AM and took a lunch break at noon by the base of a huge Poplar tree that turned out to be hollow. It was large enough for the 3 of us to fit comfortably inside with room for 2 or 3 more!

Me, Don, & Bill inside a HUGE hollow tree.

There were lots of wildflowers in bloom with Painted Trillium being the most abundant. There were lots of them along most of the length of the trail.

The delicate white blossoms of the Painted Trillium are a beautiful springtime sight in the Smoky Mountains.

there are around 20 stream crossings on this trail with the widest ones bridged by footlogs; Here’s Don Anderson making his way across one over Caldwell Fork.

Don’t slip Don, that water is very cold this time of year.

Below is a scenic view of Caldwell Fork as we neared the end of the trail.