According to foreclosure-tracking firm RealtyTrac.com, bank repossessions reached record levels for the second straight month in May, topping 93,000 properties nationwide.

As compared to May 2009, all 50 states now show an increase in annual REO activity.

Data like that won’t surprise today’s active home buyers in Farragut.  Foreclosed homes are prevalent, available and accounted for one-third of all home resales made in April.

Furthermore, total foreclosure actions — the sum of REO, default notices, and foreclosure auctions in May — topped 300,000 for the 15th straight month.

Foreclosures remain a huge influence on the housing market.

However, two interesting trends emerged in the data:

1. 9 of the top 10 metro areas for foreclosure posted annual activity decreases
2. Each of the top 4 states for Foreclosures per Household posted annual activity decreases

We can infer, therefore, that foreclosure activity may be in permanent decline in the areas hardest hit through 2007, 2008, and 2009.  In 2010, the data shows, foreclosures are waning.

This is reason for optimism — especially as FHA delinquencies slow nationwide. As fewer homeowners go delinquent, the pace of foreclosures will slow further and that should help boost home values on every block in the country.

If you’ve been considered bank-owned homes for your own purchase, give a look at the RealtyTrac foreclosure report.  It’s provides insight on a state-by-state level, and in the nation’s largest metropolitan areas.

Then, to complement your research, talk to your real estate about the foreclosure market and what opportunities may exist.   Competition for bank-owned homes can be fierce at times, but there’s plenty of “deals” out there.

You just have to know where to look.

Will The Shadow Inventory Help The Real Estate Market In Knoxville??

Will It Increase Short Sales In Knoxville??

The real estate market in Knoxville seem to be improving somewhat??  But there is something out there that could increase Knoxville Loan Modifications as well as the number of  Knoxville Short Sales.  It is what is known as the “Shadow Inventory”? What is it? How will effect the Knoxville real estate market and markets around the country. Will there be more short sales in Knoxville and around the country. These are the things we will explore in this  3 part series.

In recent months, aspects of the real estate market have seem to have stabilized. Homes sales and prices have been increasing, partially to be credited to the First Time Home Buyer’s Tax Credit that ended on April 30, 2010.

Still, interest rates and foreclosures have been increasing. And, we’ve been hearing more and more about the term “shadow inventory” in the news and what kinds of problems it could bring to to the real-estate market.  So, what’s the prognosis for the real estate market? And, how does the term “shadow inventory” factor in?

The definition of shadow inventory varies from person to person and how far ahead in the future that person is looking. And with the varying of definitions, comes a great variation in the ultimate level of desctruction that it will cause to the already fragile real-estate market.

According to recent studies from, Amherst and the National Association of Realtors (done by economist Selma Lewis), the devastation of shadow inventory that could hit the market is anywhere from 2.49 million homes, as predicted by NAR, to 7.57 homes, as predicted by Amherst.

To anyone with interests in the real estate market, these numbers could have crucial impacts on the market for years to come.  If this number of houses does get on the market like many experts are predicting, it would cause a huge inventory of houses to hit the market causing already low home prices to become much, much lower.

The definition of shadow inventory has evolved greatly.  To clear things up, here are a few different definitions:

Definition 1: All properties that are real-estate owned (REO) — that is, homes that are repossessed by lenders, but not yet on the market.

Definition 2: Homes that are REO, homes that are seriously delinquent on payments and likely to be entering into the foreclosure process, or homes that are entered into the foreclosure process.

According to the Mortage Bankers Association’s last National Delinquency Survey, in the fourth quarter of 2009, there were 7.33 million loans that were delinquent or in foreclosure.  This fact could possibly suggest that lender’s are playing a game of “extend and pretend” – meaning that they are delaying the inevitable of homes going into the foreclosure process.  Data from the Loan Processing Services (LPS) seems to support this idea, at the end of February 2010, there were 6.89 million homes that were delinquent and only 1.79 million of those were in the foreclosure process. Data from LPS also shows that in 2008-2009, loans that were 30-60 days late remained relatively stable, but loans that were “seriously delinquent” or 90+ days late were increasing rapidly.

Despite these dismal predictions though, there is some silver lining: not all of these properties will end up on the real estate market, some will be cured by Knoxville  loan modifications, Knoxville short sales or refinances.  Another huge influence on how the influx of properties will affect the market depends on when and how quickly these properties enter onto the market. If the hit the market gradually, they could ultimately just be absorbed without much effect on the market by pent-up demand and growth in housing formation.

Though, definitions and statistics on shadow inventory vary there, is one thing that can be agreed upon: there are many houses currently in limbo.  What is left to be said, is when and how many of these houses will hit the market and predicting these facts is about as easy as trying to predict the weather.

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

The national foreclosure rate is finally falling. But there is still a back log of homes where homeowners are behind on their mortgage payments. The shadow inventory is large and still going. These are homes in Knoxville and around the country where the homeowners are behind on their mortgage payments and trying to do a loan modification or considering a short sale. I personally have seen an up tick in my business with area Knoxville homeowners who want to sell their home on a short sale in order to avoid foreclosure

According to foreclosure-tracking firm RealtyTrac.com, the number of foreclosure notices dropped 2 percent between April 2009 and April 2010.

2 percent may not seem like much, but it’s the first time in the history of the RealtyTrac report that the annual foreclosure rate has dropped.

To be sure, foreclosure rates remain elevated — more than 300,000 were reported last month, but default notices appear to be approaching a plateau.

The RealtyTrac report shows some other interesting statistics, too:

• 6 states accounted for more than half of April’s bank repossessions nationwide
• For the 40th month in a row, Nevada topped the nation’s foreclosure rate
• Foreclosure rates dropped in both California and Arizona, 2 foreclosure hot-spots through 2009

The good news for housing doesn’t stop there.  9 of the top 10 leading metropolitan areas for foreclosure-related activity showed a drop in annual activity.  Only Reno, Nevada showed an increase.

Buying distressed homes is big business, according to the National Association of Realtors®, accounting for 35 percent of all home resales with a typical discount ranging near 15 percent on value.

But with the discount comes some caution. You need to know how buying a foreclosed can be different from buying a non-foreclosed home.

For example, distressed properties are often sold as-is and may have defects that render them “un-lendable”.  Secondly, “quick closings” aren’t usually possible with bank-owned homes — you’re often at the bank’s schedule and mercy.

And, lastly, not all foreclosed homes are searchable online. You’ll usually find more stock if you work with a real estate agent versus searching online.

The RealtyTrac foreclosure report is thorough and can help you gauge what’s happening on a state-by-state level, and in the nation’s largest metropolitan areas.  Once you’ve done your research, talk to your real estate agent about what to do next.

This is good news for the Knoxville Estate Market and around the country. But we aren’t out of the woods yet there are still tough times ahead for many homeowners.

If you are a Knoxville Home owner facing foreclosure you do have options. It takes a train professional like myself with the CDPE designation to help guide a distressed homeowner through the short sale process. As a CDPE we are up to date on all the latest trends and changes that are going on in order to help homeowners who may be facing foreclosure.

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

So what do I  do sell my Knoxville home on a short sale, loan modification….which is best

So your a Knoxville home owner..You are having a tough time making the mortgage payments on your Knoxville home.. You are not alone… So what do you do?? You have heard about all the solutions out there for you, researched them on the internet. Should I sell my Knoxville home using a short sale because I owe more on it than it is worth? How about a loan modification how does that work.. Will my lender even work with me if I choose to sell my using a short sale? How about a deed-in-lieu instead of my home being foreclosed on by my lender..How does that work?? What if I have 2 mortgages on my home??

Are these some of the question you are asking yourself?? If you are having trouble making your mortgage payments and don’t know where to turn you do have options other than foreclosure. You have don’t remember your lender doesn’t want to won your home. they are in the business of loaning money not real estate.

If you are having trouble the first thing you should do is contact your lender and let them you know you are having trouble making your payments and why. Then you should contact a qualified representative like a CDPE to discuss your options. That way you can make an educated decision that is best for you and your family once you have all the facts.

Are You Eligible for one of the Government Programs??

The government programs currently available to homeowners can be valuable resources, but only if you know which ones are right for your situation.

That’s why I’ve created this free resource that lets you find out which programs you’re eligible for. Read the descriptions for each program to see which one fits your situation, then fill out the corresponding survey to see if you are eligible.

Find out here or get more details here

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

If You Are A Knoxville Homeowner Facing Foreclosure…HAFA May Help You.

HAFA was introduced to simplify and streamline the short sale process. HAFA accomplishes this in the following ways:

• Compliments HAMP by providing viable alternatives for borrowers who are HAMP-eligible
• Uses standard processes, documents and timeframes
• Provides financial incentives to borrowers, servicers and investors
• Requires that borrowers be fully released from future liability for the debt
• Utilizes borrower financial and hardship information collected in conjunction with HAMP, eliminating the need for additional eligibility analysis
• Allows the borrower to receive pre-approved short sale terms prior to the property listing
• Prohibits the servicer from requiring, as a condition of approving the short sale, a reduction in the real estate commission agreed upon in the listing agreement1

HAFA provides financial incentives as follows:

• Homeowners qualify for $3,000 (updated March 26, 2010; was previously $1,500) in Borrower Relocation Assistance after a short sale or deed-in-lieu has been completed (may classify as taxable income in some cases2)
• Financial incentives for servicers participating in the program include up to $1,500 (updated March 26, 2010; was previously $1,000) servicing bonus upon completion of a Knoxville short sale or Knoxville deed-in-lieu
• Financial incentives for investors include up to $2,000 (updated March 26, 2010; was previously $1,000) for those who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders. This reimbursement will be earned on a one-for-three matching basis3
• Lenders pay all servicing fees — homeowners have no out-of-pocket expenses4

There are two additional documents which provide detailed technical information on data related to HAFA and the HAFA reporting procedures for servicers:

• HAFA Data Elements (Exhibit D) is a series of tables detailing specific reporting procedure data for servicers. It is available at the end of Supplemental Directive 09-09 Revised. This is a document for servicers
• The HAFA Data Dictionary is a spreadsheet in Excel format coordinating with HAFA Data Elements (Exhibit D) that catalogues all of the data elements and associated metadata for the program, including the names, definitions, allowable values, and data types. It also defines the functional areas where the data elements are being used.5 This is a document for servicers

If you are a Knoxville Homeowner facing foreclosure and need help call me at 865-675-8326 or email me at Rick@TheBigOrangePress.com Here is a short video that does a really nice job explaining the new program. Check it Out

Click here to view the embedded video.

What is HAFA?

The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative overseen by the US Treasury Department and administered by Fannie Mae assisting all Home Affordable Modification Program (HAMP)-eligible homeowners in avoiding foreclosure, specifically through Knoxville short sales or Knoxville deeds-in-lieu of foreclosure.1 HAFA was announced on November 30, 2009 in a HAMP Update titled Introducing the Home Affordable Foreclosure Alternatives Program

HAFA directs lenders to assist eligible homeowners in quickly and effectively implementing short sales or deeds-in-lieu by providing financial incentives to lenders that carry out foreclosure alternatives through the program’s guidelines set forth in Supplemental Directive 09-09 Revised (revised March 26, 2010).3 The program was introduced in part with the intent to remove the stigma from short sales and help keep communities from being destroyed through massive foreclosures. HAFA in its current state is only applicable to conventional-type, non-Governmental Serviced Enterprises (non-GSE) mortgages and therefore does not apply to loans owned or guaranteed by Fannie Mae or Freddie Mac.4 These organizations may have plans to release their own versions to help homeowners facing foreclosure.

If you are a Knoxville Homeowner facing foreclosure of Knoxville Area Home you do have options. You have to realize you do have options other than losing your home. The HAFA program isn’t perfect but it is step in the right direction.  As a CDPE I have been trained to help homeowners facing foreclosure understand their options. If you are in trouble  don’t lose your home to foreclosure. Need Help? Facing Foreclosure? Call Me I can help 865-675-8326 email Rick@TheBigOrangePress.com

If you are a Knoxville Homeowner facing foreclosure don’t trust your future to an untrained agent.  It takes a train professional like myself with the CDPE designation to help guide a distressed homeowner through the short sale process. As a CDPE we are up to date on all the latest trends and changes that are going on in order to help homeowners who may be facing foreclosure. If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

Part 6 The Knoxville Short Sale Packet “Working With The Negotiator“

In my last post we talked about part 5 “Getting the packet to the lender”. Today we are going to cover working with the negotiator. This is the most crucial part of a Knoxville Short Sale. If you have done everything correctly up to this point in assembling the short sale packet it can go pretty smoothly. If you haven’t gotten the lender a complete  packet it can be a complete nightmare.

You have to remember negotiators have so many files on their desks that the complete packets get done first and have a better chance to get to a closing. The negotiator is in another part of the country most of the time and doesn’t know the Knoxville TN real estate market. They have gotten a BPO (Broker Price Opinion) already with a value on the home. But along with our short sale packet we include a MLS printout on the home, three comparable homes that have sold, a detailed repair list with pictures of the home, along with a letter from me about the current market conditions and the condition of the home.

With all of this information available it gives us the ability the negotiate the sale with the negotiator and try and convince them why it is in the lenders best interest to accept this offer. This make take several phone calls back and forth with them and several updated HUD 1. But we have been very successful in getting our Knoxville Short Sales accepted because our training and experience as a Knoxville CDPE.

This is Part 5 of how to achieve a successful short sale in Knoxville, TN. If you are a Knoxville Homeowner facing foreclosure don’t trust your future to an untrained agent.  It takes a train professional like myself with the CDPE designation to help guide a distressed homeowner through the short sale process. As a CDPE we are up to date on all the latest trends and changes that are going on in order to help homeowners who may be facing foreclosure.

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

Also Read

7 Steps To A Successful Knoxville Short Sale

7 Steps To A Successful Knoxville Short Sale Part 1

7 Steps To A Successful Knoxville Short Sale Part 2

Part 3

Part 4

Part 5

Part 5 The Knoxville Short Sale Packet “Getting The Packet To The Lenders”

In my last post we talked about part 4 “About The Buyer”. Today I’m going to cover getting the “Short Sale Packet To The Lenders”

This can be the most frustrating part of a Knoxville Short Sale getting the short sale packet to the lender.  The first thing my team does when we list a home for sale that is going to be a short sale is call the loss mitigation department. We confirm the correct fax number and then we fax the authorization to release information about the home. By doing this prior to having an offer it gets a file setup on the property with the loss mitigation department. Just this simple process can take up to a month and will save valuable time once you do have an offer. It has help us get our homes closed quicker .

Once we do have an offer on the home we fax the complete packet to the lender. Then from this point forward it is following up with the lender every couple of days to verify they have gotten the short sale packet. We also verify at this time that they have everything they need from us in order to process our files. We continue follow up with the loss mitigation department until it gets to the next step the negotiator.

During this process files get lost going from one part of the loss mitigation to the other. So it isn’t unusual for us to have to submit the packet several times prior to getting to the negotiator.

This is Part 5 of how to achieve a successful short sale in Knoxville, TN.  It takes a train professional like myself with the CDPE designation to help guide a distressed homeowner through the short sale process. As a CDPE we are up to date on all the latest trends and changes that are going on in order to help homeowners who may be facing foreclosure.

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

Also Read

7 Steps To A Successful Knoxville Short Sale

7 Steps To A Successful Knoxville Short Sale Part 1

7 Steps To A Successful Knoxville Short Sale Part 2

Part 3

Part 4

Part 4 The Knoxville Short Sale Packet “About The Buyer”

In my last post we talked about part 3 “Lien and Closing Information”. Today I’m going to cover the information on the potential buyer of  a Knoxville Short Sale.

1. Accepted Purchase Agreement. When a buyer buys one of my listing that is a Knoxville Short Sale. Before my seller will accept any offer the buyer must first complete any inspections they may want to do. The only contingency on one of my short sale listings can be  financing. If the buyer wants any inspections they must do them up front and be satisfied with the home. I do this because once we get the payoff from the lenders we will need to close within 30 days most of the time. We can’t afford to waste valuable time dealing with a home inspections issues once we have a payoff. This way it is a clean contract with few contingencies as possible in it.

2. Proof of Funds. We need to provide evidence that the buyers are able to come up with the money to buy the home. If it is a cash transaction we need to get copies and verify that the funds are available to close once we get the payoff from the lender. If the buyer is getting a mortgage we need a full approval just mot a pre approval letter. I also verify with the buyers lender they will be able to close with in 30 days once I get a payoff.

3. Copy Of Earnest Monies Check. We make a copy of the earnest monies check so the lender knows we have a check in the Real Estate offices trust account.

It is critical when selling a Knoxville Home that is a short sale that you have a good solid buyer. The buyer must understand that the process can take time and they must be patient with the process. Our team at KnoxvilleHomeSaver.com goes to great lengths to work with our buyers, sellers and Realtors to make sure they understand the short sale process. We keep everyone informed with weekly updates on our transactions. We have a full time negotiator that does nothing but stay in contact with the lenders. Making sure they have everything they need on our transactions and pushes to get them closed  ASAP.

This is Part 4of how to achieve a successful short sale in Knoxville, TN.  It takes a train professional like myself with the CDPE designation to help guide a distressed homeowner through the short sale process. As a CDPE we are up to date on all the latest trends and changes that are going on in order to help homeowners who may be facing foreclosure.

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

Also Read

7 Steps To A Successful Knoxville Short Sale

7 Steps To A Successful Knoxville Short Sale Part 1

7 Steps To A Successful Knoxville Short Sale Part 2

Part 3

Part 3 The Knoxville Short Sale Packet “Liens and Closing Information”

Yesterday we covered Part 2 “About The Seller/Borrower” which is all the information that needs to be collected about the sellers portion of a the packet. Today we will talk about the information you must get about the property itself.

1. Preliminary Title Report. Whenever I list a home that is going to be sold as a Short Sale. I always order Title work on the home. That way I verify any outstanding liens and mortgages that are on the home. You will know if the taxes are current or unpaid.  It just helps you know if you will have any surprises to deal with once you start talking with the lender. If you don’t have this information up front it could cause the sale not to work out just because you didn’t have all the facts.

2. Preliminary HUD 1. This is a closing statement that is prepared by the Title company showing the lender what the list of expenses are associate with the offer they are considering. When you do the HUD 1 it is important to have figures for the prorated taxes etc that are projected 3-4 months in the future. Because it can take that long to get a home closed you are better to be a little high on the expenses than low. If the lender ends up with more money than they expected they won’t be disappointed at all.

That is all you need to have as this part of the packet. It is important to establish a relationship with a Title Company that you can trust. That way you can get the lien searches and HUD 1 quickly when you need them.  My Title Company is Title Partners of East TN. Amy Sullivan is my closer and she is just outstanding and experienced with handling my Short Sales. Terry Adams is  Title Partners of East Tn Title Attorney so if  I have Title issues Terry know how to get it taken care of for me.

This is Part 3 of how to achieve a successful short sale in Knoxville, TN.  It takes a train professional like myself with the CDPE designation to help guide a distressed homeowner through the short sale process. As a Knoxville CDPE we are up to date on all the latest trends and changes that are going on in order to help homeowners who may be facing foreclosure.

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

Also Read

7 Steps To A Successful Knoxville Short Sale

7 Steps To A Successful Knoxville Short Sale Part 1

7 Steps To A Successful Knoxville Short Sale Part 2