Time to short sell your home?
What is a short sale? A short sale is when the value of a home is less than the amount of the outstanding loans. This can be attributed to many reasons, but most commonly is a result of a rapidly declining real estate market.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can negotiate with the lender to forgive the difference.
What steps do I take in a short sale?
First, assess the true market value of your house. An experienced real estate professional, like Excel Funding Real Estate Services, Inc., will be able to give you a realistic idea of what your house will possibly sell for based on a market analysis. Beware of websites where a computer estimates your home'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, don't forget about your closing costs. My experience means I know to consider fees including title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs upon closing.
Finally, contact your lender and let them know of the situation. They may even have a particular department that deals with short sales. Ask about their specific procedures. Some lenders will be more inclined to work with you than others. They may be able to lessen your loan principal or make other arrangements. Your lender will have to agree to the final sale.