Ready 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 the amount of the outstanding loans. This can be attributed to many factors, but most commonly 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 get the lender to write off the difference.
What's involved in a short sale?
First, find out the true market value of your home. If your finances are already stretched, engaging a licensed appraiser may not be feasible. Therefore, 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 estimate of your home's value.
Next, be sure to figure in your closing costs. My work in this area means I know to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.
Finally, contact your lender and make them aware of your situation. They may even have a specific team that deals with short sales. Ask about their exact procedures. Some lenders will be more willing to work with you than others. They may be able to reduce how much you owe or make other arrangements. Your lender will have to agree to the final sale.