Are you ready to short sell your home?
Don't know what a short sale is? A short sale occurs when the amount of the outstanding loans is greater than the amount for which the home could sell. Short sales are often caused by prices in a market rapidly deflating.
Short sales may be a way for homeowners to avoid foreclosure and get out from under their loan with the lender by settling.
How do I proceed with a short sale?
First, find out the true market value of your property. Since paying for a licensed appraiser may not work with your already tight budget, a qualified local real estate agent that knows the current conditions of the Guerneville real estate market is a sound way to get an accurate opinion of your home's worth.
Next, don't forget about your closing costs. My work in this area has taught me to consider fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs upon closing.
Finally, contact your lender and notify them of the situation. They may even have a special team that deals with short sales. Ask about their exact steps. Some lenders will be more able to work with you than others. They may be able to lessen your loan principal or make other arrangements. Your lender will have to approve the final sale.