Do you need to short sell your home?
What is a short sale? A short sale is when the amount of the outstanding loans is greater than the amount for which the home could sell. Short sales are often the result of home prices in a market rapidly declining.
Short sales could be a way for homeowners to avert foreclosure and get out from under their loan with the lender by settling.
The process of a short sale...
First, get an idea of the true market value of your property. A good REALTOR®, like Mickey Hambright, will be able to give you a reasonable idea of what your home would likely sell for based on a market analysis. Watch out for websites where a computer estimates your house'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 take into account fees such as title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs upon closing.
Finally, contact your lender and make them aware of the situation. They may even have a dedicated department that oversees short sales. Ask about their specific steps. 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 agree to the final sale.