Is it time to short sell your home?
Not sure what a short sale is? 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 usually caused by prices in a market rapidly deflating.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can get the lender to forgive the difference.
How do I proceed with a short sale?
First, assess the true market value of your house.
A qualified REALTOR®, like those at Cherie Allen, Riley Jackson 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.
Need an honest idea of what your home is worth in today's market? Contact us today to find out how Cherie Allen, Riley Jackson Real Estate can help.
Next, find out your closing costs. Our work in this area has taught us to account for fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs upon closing.
Finally, get in touch with your lender and tell them of the situation. They may even have a specific department that manages short sales. Ask about their specific procedures. Some lenders will be more able to work with you than others. They may be able to decrease your loan principal or make other arrangements. Your lender will have to give approval for the final sale.