Is it time to short sell your home?
What is a short sale? A short sale happens when the value of a home is less than the amount of the outstanding loans. This situation is typically the result of prices in an area rapidly deflating.
For many homeowners, a short sale is an ideal way to avert foreclosure or bankruptcy when they can negotiate with the lender to forgive the difference.
What steps do I take in a short sale?
First, determine the true market value of your house. A knowledgeable real estate professional, like D'Addio Realty, will be able to give you a realistic idea of what your property would possibly sell for based on prior sales of similar houses in the area. Be cautious of websites where a computer estimates your home'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 work in this area means I know to account for fees such as title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs upon closing.
Finally, call your lender and let them know of the situation. They may even have a specific team that oversees short sales. Ask about their particular steps. Some lenders will be more willing to work with you than others. They may be able to decrease your loan principal or make other arrangements. Your lender will have to give consent for the final sale.