Need to short sell your home?

What is a short sale? A short sale occurs when the value of a home is less than the amount of the outstanding loans. This situation is usually the result of home values in an area rapidly declining.

For many homeowners, a short sale is an ideal way to avert foreclosure or bankruptcy when they can negotiate with the lender to forgive the difference.

How do I proceed with a short sale?

First, assess the true market value of your property. A knowledgeable real estate professional, like Neighbors Home Realty, will be able to give you a realistic idea of what your house would possibly sell for based on prior sales of similar houses in the area. Watch out for 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, don't forget about your closing costs. My experience has taught me to account for fees like title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs upon closing.

Finally, get in touch with your lender and notify them of your situation. They may even have a dedicated team that oversees short sales. Ask about their specific procedures. Some lenders will be more willing to work with you than others. They may be able to reduce how much you owe or make other arrangements. Your lender will have to approve the final sale.