Need to short sell your home?
Not sure what a short sale is? A short sale happens when you owe more than what the house is worth . Short sales are typically the result of prices in an area rapidly deflating.
For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can negotiate with the lender to write off the difference.
What steps do I take in a short sale?
First, determine the true market value of your property. Since paying for a licensed appraiser may not fit your already tight budget, an experienced local real estate agent that knows the current conditions of the Auburn real estate market is a smart way to get an accurate opinion of your home's worth.
Next, determine your closing costs. My experience has taught me to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at the closing table.
Finally, call your lender and notify them of your situation. They may even have a specific department that handles short sales. Ask about their exact procedures. Some lenders will be more able to work with you than others. They may be able to reduce your loan principal or make other arrangements. Your lender will have to give approval for the final sale.