Time to short sell your home?
What is a short sale? A short sale occurs when the value of a home is less than what is owned. This situation is usually caused by home values in a market rapidly declining.
Short sales can be a way for homeowners to prevent foreclosure and get out from under their loan with the lender by settling.
First, determine the true market value of your property. A good real estate professional, like United Realty Group, will be able to give you a reasonable idea of what your house will likely sell for based on a market analysis. Be careful of 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, estimate your closing costs. My work in this area means I know to take into account fees including title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at the closing table.
Finally, contact your lender and make them aware of your situation. They may even have a special team that deals with short sales. Ask about their exact procedures. Some lenders will be more willing to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to give approval for the final sale.