Are you ready to short sell your home?
What is a short sale? A short sale happens when the value of a home is less than the amount of the outstanding loans. Short sales are typically the result of values in a market rapidly declining.
For many homeowners, a short sale is an ideal way to avert 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, get an idea of the true market value of your house. A knowledgeable real estate professional, like Lake Country Real Estate, Inc., will be able to give you a reasonable idea of what your home will probably sell for based on a market analysis. Be cautious of websites where a computer estimates your home's market value since they may not have complete information or know important things like neighborhood trends and current listings.
Next, find out your closing costs. My experience has taught me to consider fees including title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs upon closing.
Finally, call your lender and make them aware of the situation. They may even have a special department that handles short sales. Ask about their exact process. Some lenders will be more inclined to work with you than others. They may be able to reduce the amount owed or make other arrangements. Your lender will have to agree to the final sale.