Time to short sell your home?
Don't know what a short sale is? A short sale happens when the value of a home is less than what is owned. This could be caused by many factors, 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 get the lender to forgive the difference.
What's involved in a short sale?
First, determine the true market value of your house. A good real estate professional, like Coldwell Banker Plourde Real Estate, will be able to give you a reasonable idea of what your home would possibly sell for based on a market analysis. Watch out for 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.
Next, be sure to figure in your closing costs. My work in this area means I know to consider fees like title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at the closing table.
Finally, call your lender and notify them of the situation. They may even have a specific department that manages short sales. Ask about their specific process. Some lenders will be more willing to work with you than others. They may be able to lessen how much you owe or make other arrangements. Your lender will have to approve the final sale.