Ready to short sell your home?

Don't know what a short sale is? A short sale occurs when the amount of the outstanding loans is greater than the value of the home. This situation is typically caused by home prices in a market rapidly declining.

Short sales may 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, determine the true market value of your house. A good REALTOR^®, like McElroy & Associates, will be able to give you a realistic idea of what your home would likely sell for based on a market analysis. 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, calculate 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 tally your final costs upon closing.

Finally, contact your lender and tell them of the situation. They may even have a special department that oversees 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 give approval for the final sale.