Need to short sell your home?
Not sure what a short sale is? A short sale is when you owe more than what the house is worth . Short sales are usually caused by home values in an area rapidly deflating.
For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can get the lender to forgive the difference.
What steps do I take in a short sale?
First, determine the true market value of your home. An experienced real estate professional, like RE/MAX Performance, will be able to give you a good idea of what your home should likely sell for based on prior sales of similar houses in the neighborhood. 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, determine your closing costs. My experience has taught me to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs upon closing.
Finally, call your lender and tell them of the situation. They may even have a particular department that deals with short sales. Ask about their exact procedures. Some lenders will be more able to work with you than others. They may be able to decrease the amount owed or make other arrangements. Your lender will have to give approval for the final sale.