Are you ready to short sell your home?
Not sure what a short sale is? A short sale is when you owe more than what the house is worth . This could be due to many reasons, but commonly is a result of a rapidly declining housing market.
Short sales may be a way for homeowners to avoid foreclosure and pay off their loan with the lender by settling.
What steps do I take in a short sale?
First, find out the true market value of your home. A good REALTOR®, like Selective Realty Inc., will be able to give you a reasonable idea of what your home would probably sell for based on a market analysis. Be careful of websites where a computer estimates your house's market value since they may not have complete information or know important things like neighborhood trends and current listings.
Next, don't forget about your closing costs. My experience means I know to consider fees including title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at the closing table.
Finally, call your lender and notify them of your situation. They may even have a particular department that deals with short sales. Ask about their exact procedures. Some lenders will be more able to work with you than others. They may be able to lessen your loan principal or make other arrangements. Your lender will have to give approval for the final sale.