Is it time 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. Short sales are often the result of values in a market rapidly deflating.
Short sales may be a way for homeowners to avert foreclosure and pay off their loan with the lender by settling.
How do I proceed with a short sale?
First, figure out the true market value of your property. A good real estate professional, like Mountain Ranch Realty, Inc., will be able to give you a good idea of what your property will possibly sell for based on prior sales of similar houses in the neighborhood. Watch out for 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, determine your closing costs. My experience means I know to take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at the closing table.
Finally, contact your lender and let them know of the situation. They may even have a specific team that manages short sales. Ask about their exact steps. Some lenders will be more able 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.