Do you need to short sell your home?
What is a short sale? A short sale occurs when the amount of the outstanding loans is greater than the amount for which the home could sell. Short sales are often the result of home prices in an area rapidly deflating.
Short sales can be a way for homeowners to avoid foreclosure and get out from under their loan with the lender by settling.
What steps do I take in a short sale?
First, figure out the true market value of your property. An experienced REALTOR®, like Lake Country Real Estate, Inc., will be able to give you a realistic idea of what your property should possibly sell for based on a market analysis. Watch out for 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 means I know to account for fees like title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at closing.
Finally, call your lender and notify them of your situation. They may even have a dedicated team that manages short sales. Ask about their exact 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.