Do you need to short sell your home?
What is a short sale? A short sale happens when you owe more than what the house is worth . This situation is often the result of home values in an area rapidly declining.
For many homeowners, a short sale is an ideal way to preclude foreclosure or bankruptcy when they can negotiate with the lender to forgive the remainder of the loan.
What steps do I take in a short sale?
First, find out the true market value of your house. A knowledgeable REALTOR®, like RE/MAX Performance, will be able to give you a realistic idea of what your home would possibly sell for based on a market analysis. Be cautious 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.
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Next, calculate your closing costs. My experience means I know to take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs upon closing.
Finally, get in touch with your lender and tell them of the situation. They may even have a particular department that handles short sales. Ask about their specific process. Some lenders will be more inclined to work with you than others. They may be able to decrease your loan principal or make other arrangements. Your lender will have to give approval for the final sale.