Ready to short sell your home?
Not sure what a short sale is? A short sale occurs when the value of a home is less than the amount of the outstanding loans. This could be caused by many factors, but often is a result of a rapidly declining housing market.
Short sales may be a way for homeowners to avoid foreclosure and get out from under their loan with the lender by settling.
The process of a short sale...
First, determine the true market value of your property. An experienced REALTOR®, like Awesome Real Estate Inc., will be able to give you a reasonable idea of what your house will possibly sell for based on prior sales of similar houses in the area. Watch out for 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 means I know to consider fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at the closing table.
Finally, get in touch with your lender and notify them of your situation. They may even have a special team that handles short sales. Ask about their specific procedures. Some lenders will be more inclined to work with you than others. They may be able to reduce the amount owed or make other arrangements. Your lender will have to approve the final sale.