Ready to short sell your home?
Not sure what a short sale is? A short sale occurs when you owe more than what the house will possibly fetch in the open market . This situation is often the result of prices in a market rapidly declining.
Short sales can be a way for homeowners to prevent foreclosure and get out from under their loan with the lender by settling.
What steps do I take in a short sale?
First, find out the true market value of your house. A knowledgeable REALTOR®, like McElroy & Associates, will be able to give you a good idea of what your house would possibly sell for based on prior sales of similar houses in the area. Be careful 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, determine your closing costs. My work in this area has taught me to take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs upon closing.
Finally, contact your lender and notify them of the situation. They may even have a specific team that oversees short sales. Ask about their specific steps. Some lenders will be more able to work with you than others. They may be able to reduce your loan principal or make other arrangements. Your lender will have to give consent for the final sale.