Is it time to short sell your home?
Don't know what a short sale is? A short sale happens when the value of a home is less than the amount of the outstanding loans. Short sales are typically caused by home values in a market rapidly deflating.
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 difference.
What's involved in a short sale?
First, figure out the true market value of your home. If your finances are already stretched, paying a licensed appraiser may not be feasible. Therefore, a knowledgeable local real estate agent that knows the current conditions of the Tampa real estate market is a smart way to get an accurate estimate of your home's value.
Next, determine your closing costs. My work in this area means I know to consider fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at the closing table.
Finally, contact your lender and notify them 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.