Is it time 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. This can be due to many reasons, but commonly is a result of a rapidly declining real estate market.
Short sales may be a way for homeowners to preclude foreclosure and get out from under their loan with the lender by settling.
What's involved in a short sale?
First, find out the true market value of your house. Since hiring a licensed appraiser may not fit your already tight budget, a qualified local real estate professional that knows the current conditions of the Auburn real estate market is the best way to get a reliable idea of what your home could sell for.
Next, determine 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 upon closing.
Finally, get in touch with your lender and tell them of the situation. They may even have a particular team that handles short sales. Ask about their particular 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 give consent for the final sale.