Do you need to short sell your home?
Not sure what a short sale is? 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 reasons, but commonly is a result of a rapidly declining housing market.
For many homeowners, a short sale is an ideal way to preclude foreclosure or bankruptcy when they can get the lender to forgive the difference.
What steps do I take in a short sale?
First, figure out the true market value of your house. A knowledgeable real estate professional, like D'Addio Realty, will be able to give you a good idea of what your house should probably sell for based on a market analysis. 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, don't forget about 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 upon closing.
Finally, contact your lender and notify them of the situation. They may even have a dedicated department that manages short sales. Ask about their exact procedures. Some lenders will be more able to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to give consent for the final sale.