Ready to short sell your home?
What is a short sale? A short sale is when the amount of the outstanding loans is greater than the amount for which the home could sell. This situation is usually caused by prices in an area rapidly declining.
For many homeowners, a short sale is an ideal way to avert foreclosure or bankruptcy when they can negotiate with the lender to write off the remainder of the loan.
The process of a short sale...
First, assess the true market value of your home. A knowledgeable REALTOR®, like RE/MAX Performance, will be able to give you a realistic idea of what your house would 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, calculate your closing costs. My work in this area has taught me to consider fees like title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at closing.
Finally, get in touch with your lender and tell them of your situation. They may even have a particular department that deals with short sales. Ask about their exact procedures. Some lenders will be more able to work with you than others. They may be able to decrease your loan principal or make other arrangements. Your lender will have to approve the final sale.