December 28, 2019 | pacificpropertiesteam
Is it time to short sell your home?
Don’t know what a short sale is? A short sale occurs when the value of a home is less than the amount of the outstanding loans. Short sales are often the result of values in an area rapidly declining.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can get the lender to forgive the remainder of the loan.
What steps do I take in a short sale?
First, figure out the true market value of your property. A qualified REALTOR®, like Pacific Properties, will be able to give you a reasonable idea of what your home would probably sell for based on a market analysis. Watch out for 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, determine your closing costs. Our work in this area means we know to consider fees such as title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs upon closing.
Finally, contact your lender and tell them of your situation. They may even have a specific team that oversees short sales. Ask about their particular steps. Some lenders will be more able 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 approve the final sale.