Is it time to short sell your home?
Not sure what a short sale is? A short sale occurs when the amount of the outstanding loans is greater than the value of the home. This can be attributed to many factors, but most often is a result of a rapidly declining housing market.
For many homeowners, a short sale is an ideal way to avoid foreclosure or bankruptcy when they can negotiate with the lender to forgive the remainder of the loan.
What steps do I take in a short sale?
First, assess the true market value of your home. If your finances are already pushed to the limit, paying a licensed appraiser may not be an option. Therefore, a qualified 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 what your home could sell for.
Next, don't forget about your closing costs. My work in this area means I know to take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at the closing table.
Finally, get in touch with your lender and let them know of the situation. They may even have a particular department that deals with short sales. Ask about their particular procedures. Some lenders will be more able to work with you than others. They may be able to decrease the amount owed or make other arrangements. Your lender will have to give approval for the final sale.