Is it time to short sell your home?
Don't know what a short sale is? A short sale is when the value of a home is less than the amount of the outstanding loans. This situation is often caused by home values in an area rapidly deflating.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can negotiate with the lender to forgive the remainder of the loan.
How do I proceed with a short sale?
First, assess the true market value of your house. Since paying for a licensed appraiser may not work with your already tight budget, an experienced local real estate professional that knows the current conditions of the Tampa real estate market is a smart way to get a reliable opinion of your home's value.
Next, be sure to figure in your closing costs. My work in this area means I know to take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs upon closing.
Finally, contact your lender and let them know of the situation. They may even have a particular team that oversees short sales. Ask about their exact process. Some lenders will be more willing to work with you than others. They may be able to decrease the amount owed or make other arrangements. Your lender will have to give consent for the final sale.