Time to short sell your home?
What is a short sale? A short sale is when the amount of the outstanding loans is greater than the amount for which the home could sell. This may be due to many reasons, but often is a result of a rapidly declining housing market.
For many homeowners, a short sale is an ideal way to preclude foreclosure or bankruptcy when they can get the lender to write off the remainder of the loan.
What steps do I take in a short sale?
First, get an idea of the true market value of your house. If your finances are already strained, paying a licensed appraiser may not be feasible. Therefore, a knowledgeable local real estate professional that knows the current conditions of the Auburn real estate market is a sound way to get a realistic estimate of your home's value.
Next, estimate your closing costs. My work in this area has taught me to consider fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.
Finally, call your lender and tell them of your situation. They may even have a special team that oversees short sales. Ask about their specific steps. Some lenders will be more able 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.