Is it time to short sell your home?

What is a short sale? A short sale happens when the amount of the outstanding loans is greater than the value of the home. This situation is typically the result of values in a market rapidly deflating.

For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can get the lender to write off the difference.

The process of a short sale...

First, get an idea of the true market value of your home. A qualified real estate professional, like those at Diane Babyak, will be able to give you a good idea of what your house will likely sell for based on a market analysis. Be careful 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, calculate your closing costs. Our work in this area means we know to account for fees like title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at closing.

Finally, contact your lender and notify them of your situation. They may even have a specific department that handles short sales. Ask about their particular steps. Some lenders will be more inclined to work with you than others. They may be able to reduce how much you owe or make other arrangements. Your lender will have to give consent for the final sale.