Do you need to short sell your home?
Not sure what a short sale is? A short sale is when the value of a home is less than what is owned. This could be due to many factors, but most commonly is a result of a rapidly declining housing market.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can negotiate with the lender to forgive the remainder of the loan.
What steps do I take in a short sale?
First, find out the true market value of your home. A knowledgeable REALTOR®, like Ender & Associates Realty, will be able to give you a good idea of what your property would possibly sell for based on a market analysis. Be careful of websites where a computer estimates your property's market value since they may not have complete information or know important things like neighborhood trends and current listings.
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Next, determine your closing costs. My work in this area means I know to take into account fees such as title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs upon closing.
Finally, call your lender and tell them of your situation. They may even have a specific team that deals with 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 your loan principal or make other arrangements. Your lender will have to approve the final sale.