Are you ready to short sell your home?
Not sure what a short sale is? A short sale is when you owe more than what the house will possibly sell for . This may be due to many causes, but commonly is a result of a rapidly declining real estate market.
Short sales may be a way for homeowners to avert foreclosure and pay off their loan with the lender by settling.
What's involved in a short sale?
First, find out the true market value of your property. A knowledgeable real estate professional, like RE/MAX Bay to Bay, will be able to give you a good idea of what your home should possibly sell for based on prior sales of similar houses in the area. 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.
Next, be sure to figure in your closing costs. My work in this area means I know to account for fees including 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 your situation. They may even have a dedicated department that manages short sales. Ask about their specific process. Some lenders will be more willing 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.