Do you need to short sell your home?
Not sure what a short sale is? A short sale happens when the value of a home is less than what is owned. This may be attributed to many factors, but often is a result of a rapidly declining real estate market.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can negotiate with the lender to write off the remainder of the loan.
What's involved in a short sale?
First, determine the true market value of your property. If your finances are already pushed to the limit, engaging a licensed appraiser may not be an option. Therefore, an experienced local real estate agent that knows the current conditions of the Auburn real estate market is the best way to get an accurate estimate of your home's worth.
Next, calculate 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 estimate your final costs upon 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 specific process. Some lenders will be more willing 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 consent for the final sale.