Do you need to short sell your home?
Not sure what a short sale is? A short sale happens when the value of a home is less than the amount of the outstanding loans. This situation is usually caused by prices in an area rapidly declining.
Short sales can be a way for homeowners to avert foreclosure and pay off their loan with the lender by settling.
The process of a short sale...
First, find out the true market value of your house. A good REALTOR®, like Your City Country Connection, will be able to give you a good idea of what your home should likely sell for based on prior sales of similar houses in the area. Beware of 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, be sure to figure in your closing costs. My experience has taught me to account for fees including title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at closing.
Finally, call your lender and tell 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 willing to work with you than others. They may be able to decrease how much you owe or make other arrangements. Your lender will have to agree to the final sale.