Do you need to short sell your home?

Don't know what a short sale is? A short sale is when you owe more than what the house will possibly sell for . This can be attributed to many reasons, but most commonly is a result of a rapidly declining real estate market.

For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can get the lender to write off the difference.

How to do a short sale...

First, assess the true market value of your house. A qualified REALTOR^®, like McElroy & Associates, will be able to give you a good idea of what your property would likely sell for based on a market analysis. Be cautious of websites where a computer estimates your house's market value since they may not have complete information or know important things like neighborhood trends and current listings.

Next, determine your closing costs. My experience means I know to account for fees like title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at closing.

Finally, call your lender and tell them of the situation. They may even have a specific team that deals with short sales. Ask about their specific procedures. Some lenders will be more inclined to work with you than others. They may be able to lessen how much you owe or make other arrangements. Your lender will have to give consent for the final sale.