Ready to short sell your home?
What is a short sale? A short sale occurs when the value of a home is less than the amount of the outstanding loans. This can be attributed to many causes, but frequently 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, figure out the true market value of your house. For those whose finances are already stretched, engaging a licensed appraiser may not be feasible. Therefore, an experienced local REALTOR® that knows the current conditions of the Guerneville real estate market is a sound way to get a realistic idea of your home's value.
Next, determine your closing costs. My work in this area has taught me to take into account 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 notify them of the situation. They may even have a specific department that handles short sales. Ask about their exact process. Some lenders will be more able to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to approve the final sale.