Need to short sell your home?

Don't know what a short sale is? A short sale occurs when you owe more than what the house will possibly sell for . Short sales are typically the result of values in a market rapidly declining.

Short sales can be a way for homeowners to avert foreclosure and pay off 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 good REALTOR^®, like McElroy & Associates, will be able to give you a realistic idea of what your home would probably sell for based on prior sales of similar houses in the area. Beware 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, find out your closing costs. My work in this area has taught me to consider fees including title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs upon closing.

Finally, contact your lender and let them know of the situation. They may even have a particular team that oversees short sales. Ask about their particular procedures. Some lenders will be more able to work with you than others. They may be able to reduce the amount owed or make other arrangements. Your lender will have to give approval for the final sale.