Time to short sell your home?
What is a short sale? A short sale occurs when you owe more than what the house will possibly sell for . This can be caused by many reasons, but commonly is a result of a rapidly declining housing market.
For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can negotiate with the lender to forgive the remainder of the loan.
How do I proceed with a short sale?
First, figure out the true market value of your house. If your finances are already stretched, hiring a licensed appraiser may not be feasible. Therefore, an experienced local real estate agent that knows the current conditions of the Alexandria real estate market is a sound way to get a realistic idea of your home's value.
Next, determine your closing costs. My experience has taught me to consider fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.
Finally, contact your lender and let them know of your situation. They may even have a specific team that deals with short sales. Ask about their specific steps. Some lenders will be more willing to work with you than others. They may be able to decrease the amount owed or make other arrangements. Your lender will have to agree to the final sale.