Need to short sell your home?
What is a short sale? A short sale happens when the value of a home is less than the amount of the outstanding loans. This can be due to many causes, but most often is a result of a rapidly declining housing market.
Short sales could be a way for homeowners to avoid foreclosure and pay off their loan with the lender by settling.
How do I proceed with a short sale?
First, determine the true market value of your property. An experienced REALTOR®, like Remax Allegiance, will be able to give you a reasonable idea of what your house should probably sell for based on prior sales of similar houses in the neighborhood. Be careful of websites where a computer estimates your property's market value since they may not have complete information or know important things like neighborhood trends and current listings.
Next, find out your closing costs. My experience means I know to account for fees such as title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at the closing table.
Finally, contact your lender and let them know of the situation. They may even have a special department that oversees short sales. Ask about their particular steps. Some lenders will be more inclined to work with you than others. They may be able to decrease the amount owed or make other arrangements. Your lender will have to approve the final sale.