Need 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 is worth . Short sales are typically caused by home prices in a market rapidly declining.

Short sales could be a way for homeowners to avert foreclosure and get out from under their loan with the lender by settling.

What's involved in a short sale?

First, find out the true market value of your house. A qualified REALTOR^®, like McElroy & Associates, will be able to give you a reasonable idea of what your house will possibly sell for based on prior sales of similar houses in the neighborhood. Watch out for 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, estimate your closing costs. My work in this area means I know to account for fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.

Finally, contact your lender and notify them of your situation. They may even have a specific department that deals with short sales. Ask about their specific process. Some lenders will be more willing to work with you than others. They may be able to decrease your loan principal or make other arrangements. Your lender will have to approve the final sale.