Ready to short sell your home?
Don't know what a short sale is? A short sale occurs when the value of a home is less than what is owned. This can be attributed to many causes, but commonly is a result of a rapidly declining housing 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 do I proceed with a short sale?
First, assess the true market value of your home. Since paying for a licensed appraiser may not work with your already tight budget, a knowledgeable local real estate agent that knows the current conditions of the Auburn real estate market is a smart way to get a reliable opinion of your home's worth.
Next, find out your closing costs. My work in this area has taught me to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs upon closing.
Finally, contact your lender and notify them of the situation. They may even have a dedicated team that deals with short sales. Ask about their particular process. Some lenders will be more inclined to work with you than others. They may be able to decrease your loan principal or make other arrangements. Your lender will have to agree to the final sale.