About Knoxville's Broadacres In Powell

The new federal program to help homeowners stay in their homes by lowering their interest rate and payments by either modifying their existing loan or refinancing that loan is now open for business.

One of the best parts about this program is that there is no charge to homeowners. I know there are scam artists out there offering to 'help' you refinance or get a loan modification for a fee but there is no need to give them any of your money these programs are very simple.

Here's your first step. You need to visit www.MakingHomeAffordable.gov and answer just a few short questions to determine if you're nominally qualified.

The first choice is a "Home Affordable Refinance" program which lets homeowners that are current on their mortgage payments but unable to refinance because their home's value has declined to less than their mortgage balance, refinance with a lower, more affordable mortgage.

You need to be able to answer "YES" to these four questions:

1. Are you the owner of a one- to four-unit home?
2. Do you have a loan owned or guaranteed by Fannie Mae or Freddie Mac? If you don’t know, click here.
3. Are you current on your mortgage payments? “Current” means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months.
4. Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house?

If you're eligible your next step is to gather some basic financial information. Here's a checklist of what you will need:

• Information about your mortgage, such as your monthly mortgage statement and
  
• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
  
• Your most recent income tax return.
  
• Information about any second mortgage or home equity line of credit on the house.
  
• Account balances and minimum monthly payments due on all of your credit cards.
  
• Account balances and monthly payments on all your other debts such as student loans and car loans.

The information above is most easily compiled and readable in a personal financial statement; here's a sample form for you.

After gathering this information you call your lender or loan servicer (where you make your payments) and talk with them about a "Home Affordable Refinance"

The second option for you is a "Home Affordable Modification". If you can no longer make your monthly mortgage payments you may qualify for this program to make your payments more affordable by modifying your mortgage to a lower interest rate and payment.

Here are the 5 questions you need to be able to answer "YES" to in order to see if you qualify:

1. Is your home your primary residence?
2. Is the amount you owe on your first mortgage equal to or less than $729,750?
3. Are you having trouble paying your mortgage? For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)?
4. Did you get your current mortgage before January 1, 2009?
5. Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, if applicable) more than 31% of your current gross income?

After gathering this information and preparing a personal financial statement like the one above you also need to write a hardship letter detailing why you can't make your payments anymore, i.e. loss of job, laid off, illness etc.

And then, just like above contact your lender to talk about a loan modification to lower your payment and interest rate.

Many lender have made a committment to delay foreclosure proceedings to allow homeowners to see if they meet the minimum qualifying criteria.

I know of one person in my area that recently got a mortgage modification. Their interest rate was lowered to 2% for the next 5 years and then 4.75% FIXED rate for the remaining life of the mortgage.

If any Knoxville area homeowner are having trouble with either refinancing or applying for either of these programs I will be glad to help you get started; no cost and no obligation. email me of call 865-693-3232.

If you are you’re in good company.

Currently the Knoxville Area Association of Realtor’s Multiple Listing System (MLS) has 11,576 active residential listings and 1,743 condos which have all been for sale an average time of 108 days. That’s a very clear sign to me that we’re in a strong buyer’s market.

In the month of October there were 874 closed sales but there were also 2,106 new residential listings plus another 228 condos.

I’m not going to do the math but it’s pretty plain that only about 1 out of every 15 listings sold in October.

As a seller you’re goal is to be that 1 out of 15 that got an invitation to the closing table.

Because I’m in the Knoxville area real estate market on a daily basis I see lots of sellers with houses that are grossly overpriced for various reasons.

Reasons like:

• “We really need the money.” Sorry, but buyers don’t care. If you want to sell now you need to have your house priced aggressively and in tip top shape to attract buyers that want to buy now.
  
• “We can always reduce the price later.” Later is often too ‘later’. Buyers are looking to buy now and they’re buying that 1 in 15 house that they feel gives them the most bang for their buck. Buyers pass overpriced houses by and usually don’t come back.
• “We’ll just try it at this price for a few weeks and see what happens.” Buyer activity for a new listing is typically highest while it’s still new on the market. After it has set a while buyers start passing it by because it’s stale. Usually a price reduction (a significant price reduction) is what you need to do to invite them back to take another look. Better to price it right from the start and get it sold.
• “Buyers can always make an offer if they think our price is too high.” Sounds reasonable but buyers tend to look in certain price points and if you’re so high that you’re out of their price range they’re not even going to look at your house much less make an offer.

Here’s a link back to a posting I wrote a few months ago with 4 quick ways to make your Knoxville area house sell. Not guaranteed to work but it will get you a lot closer to that closing table than you are now.

If your house or condo is currently listed with a Knoxville area Realtor ask them to take you on a CMA (Competitive Market Analysis) field trip to take a look at your competition. Choose 2 or 3 houses similar to yours currently for sale and go visit them to see how yours compares.

Then get a list of what similar houses to yours have sold for in the past 2-3 months; 6 months ago doesn’t count anymore, that’s ancient history. You need to know what is going on with sales now. Have your Realtor call the listing agents for the house that just sold and ask them what they feel made it happen.
Remember, with only 1 out of 15 listings selling last month your listing needs to stand head and shoulders above the crowd to attract buyers.

You can take a look at current homes for sale at www.KnoxvilleHomeCenter.com to see how yours stacks up to the competition.

I’m available to answer any questions you may have by phone, email, or I’ll be glad to come visit you to talk about getting your house sold.

Those of us fortunate to live in the greater Knoxville, Tennessee have a unique opportunity to enjoy camping and hiking in the nearby Great Smoky Mountains National Park.

There are over 800 miles of great hiking trails in the back country of the Smokies and many, many beautiful spots to enjoy.

But, there is also danger.

Hikers and visitors often become lost and every now and then, a death results.

While planning an upcoming trip to Spence Field, a very popular trail shelter and scenic camping area along the Appalachian Trail, I was reminded once again of the mysterious disappearance back in 1969 of a young boy named Dennis Martin.

Dennis Martin, circa 1969

On Father’s Day, 1969 Dennis Martin was six years old., His older brother, his father, grandfather, and two cousins were on their annual camping outing at the Spence Field trail shelter.

This is the old trail shelter at Spence Field along the Appalachian Trail. The park service has since replaced this shelter with a much larger one.

While playing nearby the boys decided to circle around behind the trail shelter and jump out to scare the adults; Dennis went around one way and the other three boys went in the opposite direction.

The three boys circled the shelter, jumped out and scared the adults. They all had a big laugh about it.

Then someone asked: “where’s Dennis?”.

Dennis never showed up from his side of the shelter.

Immediately the adults began searching and calling for young Dennis; no answer, no Dennis. One of the adults went for help.

Early the next day there were over 150 park rangers and volunteers searching all around Spence Field, a large, grassy area. No Dennis, no trace, no signs, no footprints, nothing.

The search continued and grew. By the eighth day helicopters were ferrying in searchers. The Army sent teams of Green Berets, there were local tracking dogs, and at the height of the search, nearly 2,000 volunteers beating every inch of the brush for miles in all directions.

Still no Dennis.

Dennis Martin remains missing to this day.

No trace of him was ever found in spite of the massive search efforts by experienced park rangers, Army personnel, dogs, and hundreds of volunteers.

I often wonder what happened to Dennis on that day so long ago; I often wonder if we will ever get an answer.