Need to short sell your home?
What is a short sale? A short sale occurs when the value of a home is less than what is owned. This can be attributed to many reasons, but often is a result of a rapidly declining housing market.
Short sales may be a way for homeowners to prevent foreclosure and get out from under their loan with the lender by settling.
What steps do I take in a short sale?
First, assess the true market value of your property. A qualified REALTOR®, like RE/MAX Performance, 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 neighborhood. Watch out for 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, estimate 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 tally your final costs at the closing table.
Finally, contact your lender and let them know of your situation. They may even have a particular department that deals with short sales. Ask about their exact steps. 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 consent for the final sale.