Ready to short sell your home?
Don't know what a short sale is? A short sale is when the amount of the outstanding loans is greater than the amount for which the home could sell. This could be attributed to many factors, but frequently is a result of a rapidly declining real estate market.
Short sales may be a way for homeowners to preclude foreclosure and pay off their loan with the lender by settling.
How to do a short sale...
First, figure out the true market value of your property. A qualified real estate professional, like Your City Country Connection, will be able to give you a reasonable idea of what your house would probably sell for based on prior sales of similar houses in the neighborhood. Watch out for 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, calculate your closing costs. My experience has taught me to take into account fees such as title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at closing.
Finally, get in touch with your lender and let them know of the situation. They may even have a special department that oversees short sales. Ask about their specific process. Some lenders will be more willing to work with you than others. They may be able to reduce how much you owe or make other arrangements. Your lender will have to give consent for the final sale.