Are you ready to short sell your home?
Not sure what a short sale is? A short sale occurs when you owe more than what the house is worth . This can be caused by many factors, but frequently is a result of a rapidly declining housing market.
Short sales could be a way for homeowners to avert foreclosure and pay off their loan with the lender by settling.
The process of a short sale...
First, find out the true market value of your property. A knowledgeable real estate professional, like RE/MAX Performance, will be able to give you a reasonable idea of what your property would likely sell for based on a market analysis. Watch out for 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 has taught me to take into account fees such as title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at the closing table.
Finally, call your lender and tell them of your situation. They may even have a specific department that deals with short sales. Ask about their specific process. Some lenders will be more willing to work with you than others. They may be able to lessen how much you owe or make other arrangements. Your lender will have to agree to the final sale.