Need to short sell your home?
Don't know what a short sale is? A short sale happens when you owe more than what the house will possibly fetch in the open market . This could be due to many reasons, but commonly is a result of a rapidly declining real estate market.
Short sales can be a way for homeowners to avoid foreclosure and pay off their loan with the lender by settling.
What steps do I take in a short sale?
First, find out the true market value of your house. An experienced REALTOR®, like RE/MAX Bay to Bay, will be able to give you a reasonable idea of what your home will probably sell for based on a market analysis. 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, estimate your closing costs. My work in this area means I know to take into account fees including title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at the closing table.
Finally, call your lender and tell them of the 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 reduce the amount owed or make other arrangements. Your lender will have to give consent for the final sale.