Foreclosure Help – Need to short sell your home? Don’t know what a short sale is? A short sale is when the amount of outstanding loans is greater than the value of the home. This can be caused by many causes, but frequently is a result of a rapidly declining housing market.
Short sales can be a way for homeowners to avert foreclosure and pay off their loan with the lender by settling.
What steps do I take in a short sale?
First, get an idea of the true market value of your property. If your finances are already stretched, hiring a licensed appraiser may not be feasible. Therefore, a knowledgeable local real estate professional that knows the current conditions of the local real estate market is the best way to get an accurate idea of your home’s worth.
Next, find out your closing costs. The knowledgeable real estate professionals at Century 21 Schmidt Real Estate will take into account fees such as title report, appraisal, escrow, property taxes, and real estate commissions to estimate your final costs at the closing table.
Finally, call your lender and tell them about the situation. They may even have a dedicated team that handles 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 your loan principal or make other arrangements. Your lender will have to approve the final sale.