Do you need to short sell your home?
What is a short sale? A short sale is when the amount of the outstanding loans is greater than the value of the home. This may be caused by many causes, but frequently is a result of a rapidly declining housing market.
Short sales could be a way for homeowners to avoid foreclosure and pay off their loan with the lender by settling.
How do I proceed with a short sale?
First, assess the true market value of your property. An experienced REALTOR®, like D'Addio Realty, will be able to give you a reasonable idea of what your property will likely sell for based on prior sales of similar houses in the area. Be careful 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, calculate your closing costs. My work in this area has taught me to take into account 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 tell them of your situation. They may even have a specific team that oversees short sales. Ask about their specific procedures. Some lenders will be more willing to work with you than others. They may be able to reduce your loan principal or make other arrangements. Your lender will have to agree to the final sale.