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 what is owned. This may be caused by many factors, but most often is a result of a rapidly declining housing market.

For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can negotiate with the lender to forgive the remainder of the loan.

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 property would possibly sell for based on a market analysis. Beware 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 account for fees including title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at the closing table.

Finally, get in touch with your lender and make them aware of the situation. They may even have a particular team that handles short sales. Ask about their particular steps. Some lenders will be more willing to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to agree to the final sale.