Are you ready 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 the result of prices in a market rapidly declining.
Short sales can be a way for homeowners to prevent foreclosure and pay off their loan with the lender by settling.
How do I proceed with a short sale?
First, figure out the true market value of your house. If your finances are already strained, hiring 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 a reliable idea of your home's value.
Next, determine your closing costs. My work in this area has taught me to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs upon closing.
Finally, contact your lender and tell them of your situation. They may even have a particular team that manages short sales. Ask about their particular process. Some lenders will be more willing to work with you than others. They may be able to reduce your loan principal or make other arrangements. Your lender will have to give approval for the final sale.