Time to short sell your home?

Don't know what a short sale is? A short sale is when you owe more than what the house will possibly sell for . This may be attributed to many factors, but most commonly is a result of a rapidly declining housing market.

Short sales could be a way for homeowners to avoid foreclosure and pay off their loan with the lender by settling.

How do I proceed with a short sale?

First, find out the true market value of your home. A knowledgeable REALTOR^®, like McElroy & Associates, will be able to give you a realistic idea of what your home will probably sell for based on a market analysis. Be cautious 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, calculate your closing costs. My experience has taught me to take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs upon closing.

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