Is it time to short sell your home?
What is a short sale? A short sale happens when the value of a home is less than the amount of the outstanding loans. This could be attributed to many reasons, but most often is a result of a rapidly declining housing market.
Short sales could be a way for homeowners to avoid foreclosure and get out from under their loan with the lender by settling.
How do I proceed with a short sale?
First, find out the true market value of your house. A qualified REALTOR®, like Jack Gaughen Network Services Hower & Associates, will be able to give you a realistic idea of what your house should probably sell for based on a market analysis. Be cautious of websites where a computer estimates your home'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 experience has taught me to account for 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 let them know of the situation. They may even have a special department that oversees short sales. Ask about their specific steps. Some lenders will be more inclined to work with you than others. They may be able to decrease your loan principal or make other arrangements. Your lender will have to approve the final sale.