Short Sale Seller
Do you need to short sell your home?
Don’t know what a short sale is? A short sale occurs when the amount of the outstanding loans is greater than the amount for which the home could sell. Short sales are often caused by prices in an area rapidly declining.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can negotiate with the lender to write off the remainder of the loan.
The process of a short sale…
First, assess the true market value of your home. A knowledgeable real estate professional, like Blue to Green Realty, will be able to give you a good idea of what your home will possibly sell for based on prior sales of similar houses in the area. Beware of 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, be sure to figure in your closing costs. My work in this area has taught me to account for fees including title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at closing.
Finally, call your lender and notify them of the situation. They may even have a particular team that handles short sales. Ask about their specific steps. Some lenders will be more able to work with you than others. They may be able to reduce your loan principal or make other arrangements. Your lender will have to agree to the final sale.