Need to short sell your home?

Not sure what a short sale is? A short sale is when the value of a home is less than the amount of the outstanding loans. This can be caused by many reasons, but commonly is a result of a rapidly declining housing market.

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

What steps do I take in a short sale?

First, figure out the true market value of your home. A qualified REALTOR^®, like McElroy & Associates, will be able to give you a good idea of what your house would probably 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, 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 estimate your final costs at closing.

Finally, contact your lender and let them know of the situation. They may even have a specific department that handles 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 how much you owe or make other arrangements. Your lender will have to agree to the final sale.