Is it time to short sell your home?
What is a short sale? A short sale is when the value of a home is less than what is owned. This may be attributed to many reasons, but commonly is a result of a rapidly declining real estate market.
Short sales may be a way for homeowners to avoid foreclosure and pay off their loan with the lender by settling.
How do I proceed with a short sale?
First, find out the true market value of your home. A knowledgeable real estate professional, like Your City Country Connection, will be able to give you a reasonable idea of what your property should possibly sell for based on prior sales of similar houses in the neighborhood. Be careful of websites where a computer estimates your property'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 work in this area has taught me to account for fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs upon closing.
Finally, call your lender and notify them of your situation. They may even have a special team that deals with short sales. Ask about their specific procedures. Some lenders will be more inclined to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to give approval for the final sale.