Are you ready to short sell your home?
What is a short sale? A short sale occurs when you owe more than what the house is worth . This situation is usually the result of values in a market rapidly deflating.
For many homeowners, a short sale is an ideal way to avert foreclosure or bankruptcy when they can negotiate with the lender to write off the remainder of the loan.
How to do a short sale...
First, get an idea of the true market value of your property. A qualified REALTOR®, like Lake Country Real Estate, Inc., will be able to give you a good idea of what your house should probably sell for based on a market analysis. Be cautious of websites where a computer estimates your home'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 work in this area has taught me to account for fees like title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at closing.
Finally, contact your lender and notify them of the situation. They may even have a specific department that oversees short sales. Ask about their specific steps. Some lenders will be more willing 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 consent for the final sale.