Time to short sell your home?
Don't know what a short sale is? A short sale occurs when the value of a home is less than what is owned. This can be attributed to many causes, but frequently is a result of a rapidly declining housing market.
For many homeowners, a short sale is an ideal way to avert foreclosure or bankruptcy when they can get the lender to forgive the difference.
How to do a short sale...
First, assess the true market value of your home. Since hiring a licensed appraiser may not work with your already tight budget, an experienced local real estate agent that knows the current conditions of the Milpitas real estate market is a smart way to get a realistic idea of what your home could sell for.
Next, determine your closing costs. My experience has taught me to take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at closing.
Finally, call your lender and notify them of the situation. They may even have a specific team that deals with short sales. Ask about their specific process. Some lenders will be more inclined to work with you than others. They may be able to reduce the amount owed or make other arrangements. Your lender will have to agree to the final sale.