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 amount for which the home could sell. This situation is typically the result of home prices in an area rapidly declining.

Short sales can be a way for homeowners to avert foreclosure and get out from under their loan with the lender by settling.

How to do a short sale...

First, get an idea of the true market value of your property. A knowledgeable real estate professional, like Excel Funding Real Estate Services, Inc., will be able to give you a good idea of what your property should likely 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.

Next, calculate your closing costs. My experience means I know to account for fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at the closing table.

Finally, get in touch with your lender and notify them of the situation. They may even have a special 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 lessen the amount owed or make other arrangements. Your lender will have to approve the final sale.