What is Foreclosure in Knoxville, Tennessee?

Find the right Foreclosure Bankruptcy attorney in Knoxville, TN

Foreclosure is a judicial process in which a mortgage lender recoups some of its losses in the event of default by taking possession and/or ownership of the home that secured the loan in the first place in Knoxville, Tennessee Foreclosure often requires the house to be sold at auction. Often, banks want to get rid of the property as soon as they can, in order to gather as much money as possible, and move on.

In all states in the U.S., including Tennessee, there is an option to go through foreclosure via judicial sale, in which a court oversees the sale, and makes sure that the proceeds first go to the lender, and then to any other entities that might have a lien or other interest in the property (in order of priority), and, finally, to the borrower, if anything is left. In some states, original mortgages are "non-recourse loans," meaning that the lender can only recover ownership of the house in the event of default. If the house is now worth less than the balance of the mortgage, the lender has to take the loss. You should speak with a Knoxville, Tennessee lawyer to see if this state is one of them. However, it is almost always the case that this protection does not apply to loans which have been refinanced.

How Can I Avoid Foreclosure in Tennessee?

First, and most importantly, you should not ignore the issue. Failing to respond to foreclosure calls from your lender will not make a problem go away. You should stay in touch, and be straightforward with, your creditor as much as possible. You should remember that banks in Knoxville don't want your house. While the foreclosure process can be devastating for the homeowner, it's no walk in the park for the bank, either. They expected to make a profit through interest on the loan paid over time, and foreclosure is a last resort, allowing them to cut their losses and move on. If you are straightforward with them, lenders will normally try to accommodate your changed financial situation, to avoid a default on your part, and the necessity of foreclosing on their part.

If you can't reach a solution with your lender, there are other options. You could, for example, try a "short sale," which allows you to sell your house for whatever amount you can get, and use the proceeds to pay your mortgage. If the house sells for less than you owe, the bank will get the proceeds of the sale, and the rest of the debt will be forgiven. There is also the option of a "short refinance," which forgives a considerable portion of your mortgage debt, and refinances the rest.

How Can A Knoxville, Tennessee Attorney Help?

If you think foreclosure is imminent, a good Knoxville, Tennessee attorney might be your best hope for staving it off. Even if keeping the house proves impossible, a good lawyer can minimize the financial effects.

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Life in Knoxville

Knoxville is the seat of Knox County and 3rd largest municipality in the State of Tennessee. That means a number of courts like Knox County and Tennessee State Courts are located in Knoxville. Likewise, Knoxville is home to some of Tennessee's most outstanding lawyers. Knoxville lawyers are familiar with local and Federal cases like bankruptcy, divorce, immigration, and personal injury lawsuits. Aside from the legal business, Knoxville is home to some nationally known institutions that help attract people to the city. The University of Tennessee, the Department of Energy facility Oak Ridge National Labrotory, the National Transportation Research Center, the Tennessee Valley Authority, and a number of business' headquarters. Producers of Bonnaroo Music Festival AC Entertainment, the Pilot Corporation, Sea Ray, Brunswick Boat Group, and Scripps Networks Interactive (HGTV) are all headquartered in Knoxville. That could be why Forbes Magazine named Knoxville among the "top 10 metropolitan hotspots" and "top 5 business and career" cities in the United States. Knoxville events and attractions encourage a number of tourists to visit each year. Blender magazine named Knoxville the 20 most rock and roll cities in America. It plays host to the 17 day long Dogwood Arts Festival, Kuumba Festival, and Boomsday, the largest Labor Day fireworks display in the United States.

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