Are you ready to short sell your home?
Not sure what a short sale is? A short sale happens when the value of a home is less than the amount of the outstanding loans. Short sales are usually caused by home values in an area rapidly deflating.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can negotiate with the lender to write off the remainder of the loan.
How do I proceed with a short sale?
First, assess the true market value of your house. Since paying for a licensed appraiser may not fit your already tight budget, a qualified local REALTOR® that knows the current conditions of the Guerneville real estate market is the best way to get a realistic idea of your home's value.
Next, calculate your closing costs. My experience means I know to take into account fees such as title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at closing.
Finally, contact your lender and notify them of your situation. They may even have a particular team 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 the amount owed or make other arrangements. Your lender will have to approve the final sale.