Need to short sell your home?
What is a short sale? A short sale happens when the amount of the outstanding loans is greater than the value of the home. This may be attributed to many factors, but most often is a result of a rapidly declining real estate market.
Short sales can be a way for homeowners to prevent foreclosure and pay off their loan with the lender by settling.
What steps do I take in a short sale?
First, determine the true market value of your property. For those whose finances are already stretched, engaging a licensed appraiser may not be feasible. Therefore, a qualified local REALTOR® that knows the current conditions of the Guerneville real estate market is the best way to get a reliable idea of your home's value.
Next, calculate your closing costs. My work in this area means I know to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs upon closing.
Finally, call your lender and let them know of the situation. They may even have a particular department that handles short sales. Ask about their specific procedures. Some lenders will be more able to work with you than others. They may be able to lessen your loan principal or make other arrangements. Your lender will have to agree to the final sale.