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 the amount of the outstanding loans. This may be attributed to many causes, but most commonly is a result of a rapidly declining housing market.
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.
How do I proceed with a short sale?
First, find out the true market value of your property. A good real estate professional, like D'Addio Realty, will be able to give you a realistic idea of what your property will likely sell for based on prior sales of similar houses in the neighborhood. 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 work in this area means I know to take into account fees such as title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at closing.
Finally, contact your lender and make them aware of the situation. They may even have a dedicated team that manages short sales. Ask about their specific process. Some lenders will be more willing to work with you than others. They may be able to reduce the amount owed or make other arrangements. Your lender will have to give approval for the final sale.