Your Home as a Short Sale...

Don't know what a short sale is? A short sale occurs when the amount of the outstanding loans is greater than the value of the home. This may be attributed to many factors, but most commonly is a result of a rapidly declining real estate market.

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.

What Steps do I take in a Short Sale?

First, get an idea of the true market value of your home. A Real Estate Professional with knowledge of the Local Market can give you a good idea of what your home will probably sell for based on prior sales of similar houses in the neighborhood. 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, don't forget about your closing costs. My work in the Triad Area means I know to account for fees including title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.

Finally, contact your lender and tell them your situation. They may even have a dedicated team that handles short sales. Ask about their particular steps - some lenders are more willing to work with you than others. They may be able to lessen how much you owe or make other arrangements.

Please note - Your lender will have to approve the final sale.