Do you need to short sell your home?

Not sure what a short sale is? A short sale occurs when the amount of the outstanding loans is greater than the value of the home. This may be due to many causes, but commonly is a result of a rapidly declining housing market.

For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can get the lender to forgive the remainder of the loan.

What steps do I take in a short sale?

First, figure out the true market value of your property. Since hiring a licensed appraiser may not work with your already tight budget, a knowledgeable local real estate agent that knows the current conditions of the Cary real estate market is the best way to get a realistic opinion of your home's worth.

Next, determine your closing costs. My experience has taught me to take into account fees including title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at closing.

Finally, get in touch with your lender and let them know of the situation. They may even have a specific department that manages short sales. Ask about their particular procedures. 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 give consent for the final sale.