Are you ready to short sell your home?
Not sure what a short sale is? A short sale is when the value of a home is less than what is owned. Short sales are often the result of values in a market rapidly deflating.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can get the lender to write off the remainder of the loan.
The process of a short sale...
First, find out the true market value of your property. An experienced real estate professional, like RE/MAX Performance, will be able to give you a reasonable idea of what your property will possibly sell for based on prior sales of similar houses in the neighborhood. 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, estimate 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 at the closing table.
Finally, call your lender and notify them of the situation. They may even have a particular team that manages short sales. Ask about their particular process. Some lenders will be more inclined to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to approve the final sale.