Need to short sell your home?
Not sure what a short sale is? A short sale happens when you owe more than what the house is worth. This could be due to many factors, but commonly is a result of a rapidly declining real estate market.
For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can negotiate with the lender to write off the difference.
What steps do I take in a short sale?
First, find out the true market value of your home. A knowledgeable REALTOR®, like HOMM Real Estate Services, will be able to give you a realistic idea of what your house would possibly sell for based on a market analysis. 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, find out your closing costs. Consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs upon closing.
Finally, call your lender and let them know of your situation. They may even have a dedicated department that deals with short sales. Ask about their particular 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 give consent for the final sale.