Are you ready to short sell your home?
Don't know what a short sale is? A short sale is when the value of a home is less than what is owned. Short sales are usually caused by home prices in an area rapidly declining.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can get the lender to write off the remainder of the loan.
What steps do I take in a short sale?
First, assess the true market value of your house. An experienced REALTOR®, like Coast to Coast Property Brokers, will be able to give you a good idea of what your house should likely sell for based on prior sales of similar houses in the neighborhood. Be cautious 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 experience means I know to take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at the closing table.
Finally, contact your lender and let them know of the situation. They may even have a special department that manages short sales. Ask about their exact process. Some lenders will be more inclined to work with you than others. They may be able to decrease your loan principal or make other arrangements. Your lender will have to approve the final sale.