Time to short sell your home?
Don't know what a short sale is? A short sale occurs when you owe more than what the house will possibly fetch in the open market . This can be attributed to many factors, but most commonly is a result of a rapidly declining real estate market.
For many homeowners, a short sale is an ideal way to preclude foreclosure or bankruptcy when they can negotiate with the lender to write off the remainder of the loan.
The process of a short sale...
First, get an idea of the true market value of your house. A knowledgeable real estate professional, like Your City Country Connection, will be able to give you a good idea of what your home will probably sell for based on a market analysis. Beware 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, find out your closing costs. My work in this area has taught me to account for fees like title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at 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 specific process. Some lenders will be more able to work with you than others. They may be able to reduce your loan principal or make other arrangements. Your lender will have to give approval for the final sale.