Is it time to short sell your home?
What is a short sale? A short sale occurs when you owe more than what the house will possibly sell for. This situation is typically caused by home 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.
What steps do I take in a short sale?
First, figure out the true market value of your property. A qualified REALTOR®, like Fenton Real Estate, we will be able to give you a realistic idea of what your property will likely sell for based on a market analysis. Be cautious of 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.
Next, be sure to figure in your closing costs. Our experience means we know to account for fees including title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at the closing table.
Finally, get in touch with your lender and tell them of the situation. They may even have a particular department that handles short sales. Ask about their particular process. Some lenders will be more willing 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.