About Sevier County, TN

Well, as we Tennesseans start every sentence. I just had the most trying experience with one of the banks we are "lending" money to and a bank that must just be plain dumb about business.
I had not one, not two, but three contracts on one single vacation home in Gatlinburg with unbelievable views of the great Smoky Mountains and views of downtown Gatlinburg.
This was a short sale and I wrote one of these in January and one in February and received one in February from another agent. The first two buyers backed out from the fact that these two banks could not give me an answer in two months. Then after they backed out I got another contract on this vacation cabin and still the banks can't give me an answer. Now I have this buyer backing out.
What in the world is wrong with this picture. This property is going into foreclosure because the right hand does not know what the left hand does and everyone loses.
Suntrust who holds the 2nd and will get nothing when Chase forecloses, was holding out for more money. Someone besides me must think they have lost their minds.
I am glad that I live in a beautiful vacation area like the Great Smoky Mountains where dealing with this type of sale is not very often but I feel great admiration for those agents that have to deal with this type of sale daily.
My hat is off to you and when you have time come on up or down which ever it is and enjoy the lights of Gatlinburg or Pigeon Forge or just take in the breathless views we have in our glorious mountains.
Thanks for listening, Delores

I spoke with 3 local lenders in Sevier County, TN in the last couple of days who service loans in Gatlinburg, TN, Sevierville, TN and Pigeon Forge Tn. I asked them about mortgage lending and why money was "so tight" and "not available" for those even with good credit scores. All three of them looked at me like I was on another planet....

One said "it's a revolving door here--we're getting all kinds of re-financing and new loans...there's money to lend here!

Another corrected me, saying that her bank (WELLS FARGO) was continuing to offer 90% loans on vacation homes or second homes!

It is so important to go right to the source, and not rely on the infomercials that cable TV has become to find out what's really happening in a specific market. Lenders here are saying "bring it on" and wanting to use their experience and creativity to address all kinds of challenges. Never hurts to get the information!

Contact Wells Fargo, BB&T or SunTrust (at (865)429-6400 here in town to get more info!

Just a reminder that furnishings (even including appliances) are considered by lenders to be "personal property" and are therefore not an automatic part of a short sale negotiation. Typically the owner of a property can remove personal property during the short sale process, unless it is part of the written contract. An addendum to the contract specialfically addessing the personal property in the home is one way to deal with this.

I've been speaking to some of my agents about pricing their sellers' homes ahead of the market. That was an easy thing to do when the market trends were going up. Now that they are headed in the opposite direction I find that many agents do not want to have that conversation with their sellers.

Pricing ahead of the market as prices were increasing was almost a pleasure. "Mr./Mrs. Seller" the last home on your street sold for $305,000 last week, so with appreciation at 4% per quarter this year and the average time on the market at 100 days your home should sell near 318,000. GREAT! That was an easy conversation to have and meant that you could be the bearer of good news on almost every occasion.

Today the conversation is not so eagerly anticipated. "Mr./Mrs. Seller" the last home on your street sold for $280,000 100 days ago and the market is declining at a rate of 4% per quarter with an average time on the market of 180 days. That means your home should sell in the range of $245,000. OUCH! That's a conversation most people want to avoid.

However, we are in the reality/real estate business and to indulge the fantasies of sellers to their own detriment is not in either of our interest. They want to sell, we want to help them sell and ultimately be paid at closing for our efforts and knowledge.

It's still a tough conversation to have with most sellers. Especially for a group of people who care about their customers and clients the way these guys do.

I know we all look forward to changing the conversation as foreclosures slow and prices level off.

It's so easy to get overwhelmed---switch your TV from channel to channel and one is worse than the next..Warren Buffet says we've fallen off a cliff, the wars continue, polar bears are challenged, real estate sales are in the dumps....it seems everywhere we turn there is just more and more. I was feeling this way, on this early spring morning in Gatlinburg, Tennessee, when I looked out my window and saw 100 robins in my front yard---OK I stopped counting at 86 but I know the rest of them were there! In an eternal symbol of spring's imminent arrival, they had stopped to give me the boost I needed! We'll make our way through these challenges, and be better, more grounded people for it! The robins will come and then the spring!