Are you ready to short sell your home?
Don't know what a short sale is? A short sale happens
when the amount of the outstanding loans is greater than the value of the home.
This situation is often caused by home prices in an area rapidly deflating.
For many homeowners, a short sale is preferential to 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, figure out the true market value of your property.
A qualified real estate professional, like Wendy Thomas, Allen Tate Realtors, will be able to give you a reasonable idea of what your home should probably sell for based on a market analysis. Be careful of websites where a computer estimates your house's market value since they may not have complete information or know important things like neighborhood trends and current listings.
Next, don't forget about your closing costs. My experience has taught me to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.
Finally, get in touch with your lender and tell them of the situation. They may even have a special department that manages short sales. Ask about their exact process. Some lenders will be more willing 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.