Is it time 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 could be caused by many reasons, but most commonly is a result of a rapidly declining real estate market.
For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can get the lender to write off the difference.
The process of a short sale...
First, find out the true market value of your house. A good real estate professional, like Lake Country Real Estate, Inc., will be able to give you a realistic idea of what your property would likely sell for based on a market analysis. Beware 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, 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 at closing.
Finally, get in touch with your lender and notify them of your situation. They may even have a specific team that manages short sales. Ask about their particular steps. 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 approve the final sale.