Avoiding Foreclosure in Tennessee by Utilizing a Short Sale

In a short sale, a property is sold for an amount less than what is owed on the mortgage. This typically occurs when a homeowner is unable to make mortgage payments and the lender agrees to permit the sale of the property for less than the outstanding amount. Short sales can be a potential solution in Tennessee for avoiding foreclosure.

Here’s an example:

  • Your mortgage debt is $200,000 while the estimated value of your home is $150,000.
  • You can’t afford to pay your mortgage, so you’re requesting your lender’s approval for a short sale.
  • If your lender approves, you have the option of selling your home for $150,000 which will result in the forgiveness of the remaining $50,000 that you owe.

If you are a homeowner and facing foreclosure, consider short sales as a viable option. Besides aiding you in avoiding foreclosure, which can harm your credit score, short sales offer a convenient and expeditious approach to sell your home.

The Disadvantages Of A Short Sale

While a short sale has its advantages, it also has drawbacks. One such disadvantage is that you may receive a lower amount from selling your home compared to selling it for the complete mortgage amount.. The lender will approve a short sale only if the sale price is sufficient to cover the remaining mortgage balance and any other fees related to the sale.

Additionally, it is important to note that a short sale can have a negative impact on your credit score, despite not being considered a mortgage default. This could potentially make it challenging to obtain a loan down the road.Short sales can be lengthy and complicated. The process might take a few months to finish, and there is no assurance that the lender will approve it.

The Advantages Of A Short Sale

A short sale has a couple of benefits. It can prevent foreclosure, which can harm your credit score and hinder future home buying. While a short sale can still impact your credit score, it usually isn’t as adverse as a complete foreclosure.

Additionally, opting for a short sale can expedite the process of selling your home. In case of impending foreclosure, your lender might be willing to give the green signal for a short sale faster than a traditional sale, thereby reducing the stress and ambiguity associated with foreclosure.

One of the benefits of a short sale is that it could lower your closing costs compared to a traditional sale. With a traditional sale, you’re responsible for paying the closing costs, but with a short sale, your lender may agree to waive some or all of the costs. Before deciding on a short sale, it’s important to carefully consider the pros and cons and seek advice from a real estate agent and financial advisor to determine if it’s the right choice for you.

Summary of Pros and Cons of a Short Sale From Investopedia.


  • Allows homeowners to dispose of a debt that they are unlikely to repay.
  • Homeowners have to pay fewer fees than a typical home sale.
  • Short sales allow buyers to buy property at a discount.
  • Lenders may write off part of the debt as a loss.


  • Short sales come with fewer legal disclosures than a typical home sale.
  • There is more paperwork involved in a short sale.
  • Short sales can damage the seller’s credit rating, but less than a foreclosure.

Alternatives To A Short Sale In Tennessee

If you are in danger of losing your home due to foreclosure, there are alternative options you should consider apart from opting for a short sale. These include:

  • Reinstating your loan: If you can manage to gather enough funds to cover your past due mortgage payments, it is possible to restore your loan and prevent foreclosure.
  • Negotiating a loan modification: You can ask your lender if they can modify your loan terms, like reducing your interest rate or prolonging your loan term, which may help make your mortgage payments more manageable.
  • Filing for bankruptcy: If you’re struggling to pay your mortgage and have no other options left, filing for bankruptcy could be an option. Though, it’s important to keep in mind that this could negatively affect your credit score, even though it can also halt foreclosure.
Utilize a Short Sale In Tennessee To Avoid Foreclosure

Selling Your Home to a Cash Buyer

If you’re facing foreclosure and need to do a short sale on your house, consider using a professional company that specializes in buying homes. These companies are often approved by lenders for short sales when the amount owed is sufficient.

If you’re facing foreclosure, selling your home to cash buying companies can speed up the process because they don’t require financing. These companies may also be willing to pay more for your home compared to traditional buyers, which can help you get a better deal for your property.

It is essential to research “we buy houses” companies before collaborating with them. Some of these firms might use unethical practices and exploit homeowners who are at risk of foreclosure. Be sure to comprehend the terms of the agreement before putting your signature on anything.

Here are some things to keep in mind when working with a professional home buying company:

  • Make sure to get written documentation of all the details, such as the amount you’re paying, the date of closing, and any costs that you’ll need to cover.
  • It is important to clarify how the company plans to market your home and their estimated timeline for closing the sale.
  • To get an idea of what to expect from the company, ask for references from previous customers.
  • It’s important to be ready to negotiate when you receive a price offer from the company. They might not offer their best price right away, so be ready to haggle. Remember, if you’re not happy with the offer, it’s okay to walk away.

Before working with a “we buy houses” company, do thorough research and understand the potential risks. However, if you locate a trustworthy company, they can be a valuable option for homeowners who are facing foreclosure.

Advantages Of Selling To A Professional Home Buyer

Selling your home to a cash buyer has a few benefits. One of them is a quicker transaction. Cash buyers don’t require financing, which means they can complete the sale faster than regular buyers. This can help you save time and reduce stress.

Furthermore, there is no need for you to prepare your property for sale if you are selling to a cash buyer. This is because cash buyers are not very particular about the home’s condition. They won’t demand that you clean up, make repairs, update your landscaping, or renovate. Although they might offer less money than a traditional buyer, they can help you avoid expenses and the negative consequences of foreclosure.

Selling your home to a cash buyer has the advantage of not requiring you to pay any closing costs. This can save you a significant amount of money, making it a great choice particularly if you’re dealing with foreclosure. By selling to a professional home buyer, you can easily and quickly sell your home without incurring additional fees, and you can even use a short sale option if necessary.

Integrity House Buyers In Tennessee Can Help Guide You

If you need to sell your house quickly because of illness, divorce, or any other reason, it’s a good idea to consider selling to a professional home buyer. If you’re thinking about a short sale, feel free to contact us. Integrity House Buyers can purchase your property quickly without requiring any updates, repairs, or cleaning from you. We buy your property as-is and can typically close the deal within a week. Integrity House Buyers buys homes all over Tennessee like Clarksville, Cumberland City, Springfield, and more. We are interested in buying homes regardless of their condition, appearance, or equity amount. You can find more about how we operate here. We don’t charge extra fees for commissions or closing costs. If you want to know how much we can offer for your property, please call 931-213-6951 to receive a free, no-obligation quote. You have nothing to lose by exploring this opportunity.

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