Don't know what a short sale is? A short sale occurs when the amount of the outstanding loans are greater than the value of the home. This could be caused by many causes, but frequently is a result of a rapidly declining housing market.
For many homeowners, a short sale is an ideal way to avert foreclosure or bankruptcy when they can negotiate with the lender to write off the difference.
The process of a short sale:
First, figure out the true market value of your property. A good REALTOR®, like those at Tiffanie Burney, will be able to give you a good idea of what your property should likely sell for based on prior sales of similar houses in the neighborhood. 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.
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Next, find out your closing costs. The experienced real estate agents at Tiffanie Burney will consider fees including title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at the closing table.
Finally, call your lender and make them aware of the situation. They may even have a particular team that deals with short sales. Ask about their specific steps. Some lenders will be more inclined to work with you than others. They may be able to decrease how much you owe or make other arrangements. Your lender will have to agree to the final sale.
