Need to short sell your home?
Not sure what a short sale is? A short sale occurs when the value of a home is less than the amount of the outstanding loans. Short sales are often the result of home values in a market rapidly deflating.
Short sales may be a way for homeowners to avert foreclosure and pay off their loan with the lender by settling.
The process of a short sale...
First, assess the true market value of your home. A good REALTOR®, like Your City Country Connection, will be able to give you a reasonable idea of what your property would possibly sell for based on prior sales of similar houses in the area. Be careful 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, find out your closing costs. My work in this area has taught me to take into account fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at the closing table.
Finally, call your lender and notify them of your situation. They may even have a dedicated team that manages short sales. Ask about their particular process. Some lenders will be more inclined 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 consent for the final sale.