Time to short sell your home?
What is a short sale? A short sale is when you owe more than what the house will possibly fetch in the open market . This can be due to many causes, but most commonly is a result of a rapidly declining housing market.
Short sales can be a way for homeowners to preclude foreclosure and pay off their loan with the lender by settling.
What's involved in a short sale?
First, determine the true market value of your house. A good real estate professional, like Mountain Ranch Realty, Inc., will be able to give you a reasonable idea of what your property should possibly sell for based on prior sales of similar houses in the neighborhood. Beware 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 work in this area has taught me to take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at the closing table.
Finally, contact your lender and notify them of your situation. They may even have a specific team that handles short sales. Ask about their particular procedures. 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.