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 usually the result of prices in a market rapidly deflating.

For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can get the lender to write off the difference.

How do I proceed with a short sale?

First, get an idea of the true market value of your home. An experienced REALTOR^®, like McElroy & Associates, will be able to give you a good idea of what your home would probably sell for based on prior sales of similar houses in the area. 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 experience means I know to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs upon closing.

Finally, contact your lender and let them know of your situation. They may even have a dedicated department that manages short sales. Ask about their specific procedures. Some lenders will be more inclined to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to give approval for the final sale.