Ready to short sell your home?
What is a short sale? A short sale occurs when you owe more than what the house will possibly fetch in the open market . This can be due to many factors, but frequently is a result of a rapidly declining real estate market.
For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can negotiate with the lender to write off the remainder of the loan.
What's involved in a short sale?
First, determine the true market value of your home. An experienced real estate professional, like Future Home Realty, will be able to give you a realistic idea of what your property would possibly sell for based on a market analysis. Be careful 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, be sure to figure in your closing costs. My experience has taught me to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.
Finally, contact your lender and make them aware of your situation. They may even have a dedicated team that handles short sales. Ask about their specific procedures. Some lenders will be more able to work with you than others. They may be able to reduce how much you owe or make other arrangements. Your lender will have to give approval for the final sale.