Are you ready to short sell your home?
What is a short sale? A short sale is when you owe more than what the house is worth . This can be attributed to many causes, but most commonly is a result of a rapidly declining housing market.
Short sales may be a way for homeowners to prevent foreclosure and get out from under their loan with the lender by settling.
How do I proceed with a short sale?
First, determine the true market value of your property. A good real estate professional, like Jack Gaughen Network Services Hower & Associates, will be able to give you a reasonable idea of what your house would likely sell for based on a market analysis. Beware of websites where a computer estimates your property'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 experience means I know to consider fees including title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at the closing table.
Finally, call your lender and notify them of the situation. They may even have a dedicated department that manages short sales. Ask about their exact procedures. Some lenders will be more willing to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to give approval for the final sale.