Ready to short sell your home?
What is a short sale? A short sale happens when the amount of the outstanding loans is greater than the amount for which the home could sell. Short sales are typically the result of prices in a market rapidly declining.
For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can get the lender to forgive the remainder of the loan.
The process of a short sale...
First, get an idea of the true market value of your home. A knowledgeable real estate professional, 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. Watch out for 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, don't forget about your closing costs. My experience has taught me to take into account fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.
Finally, contact your lender and tell them of your situation. They may even have a special team that deals with short sales. Ask about their particular procedures. Some lenders will be more inclined 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.