Do you need to short sell your home?

Not sure what a short sale is? A short sale is when you owe more than what the house is worth . This could be due to many factors, but commonly is a result of a rapidly declining housing market.

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

How do I proceed with a short sale?

First, determine the true market value of your house. An experienced real estate professional, like McElroy & Associates, will be able to give you a reasonable idea of what your property would possibly sell for based on prior sales of similar houses in the neighborhood. 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, find out your closing costs. My work in this area has taught me to account for fees such as title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at the closing table.

Finally, get in touch with your lender and notify them of your situation. They may even have a specific team that manages 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.