Are you ready to short sell your home?
Don't know what a short sale is? A short sale occurs when the amount of the outstanding loans is greater than the value of the home. This may be attributed to many reasons, but often is a result of a rapidly declining housing market.
Short sales may be a way for homeowners to prevent foreclosure and get out from under their loan with the lender by settling.
How do I proceed with a short sale?
First, find out the true market value of your house. If your finances are already strained, paying a licensed appraiser may not be feasible. Therefore, an experienced local REALTOR® that knows the current conditions of the Auburn real estate market is a sound way to get a reliable estimate of what your home could sell for.
Next, be sure to figure in your closing costs. My work in this area has taught me to take into account fees including title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs upon closing.
Finally, contact your lender and let them know of the situation. They may even have a dedicated department that oversees short sales. Ask about their specific procedures. Some lenders will be more willing to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to agree to the final sale.