Are you ready to short sell your home?
What is a short sale? A short sale is when the amount of the outstanding loans is greater than the amount for which the home could sell. This may be due to many causes, but commonly is a result of a rapidly declining real estate market.
Short sales could be a way for homeowners to preclude foreclosure and get out from under their loan with the lender by settling.
The process of a short sale...
First, assess the true market value of your property. An experienced real estate professional, like McElroy & Associates, will be able to give you a reasonable idea of what your home will possibly 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, find out your closing costs. My experience has taught me to consider fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs upon closing.
Finally, get in touch with your lender and let them know of your situation. They may even have a dedicated team that deals with short sales. Ask about their exact procedures. Some lenders will be more inclined to work with you than others. They may be able to decrease how much you owe or make other arrangements. Your lender will have to give consent for the final sale.