Do you need to short sell your home?

What is a short sale? A short sale happens when the value of a home is less than what is owned. Short sales are typically caused by prices in a market rapidly declining.

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

What steps do I take in a short sale?

First, figure out the true market value of your home. A knowledgeable real estate professional, like Rancho Buena Vista Real Estate, will be able to give you a reasonable idea of what your home will possibly sell for based on a market analysis. Beware 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, don't forget about your closing costs. Our experience has taught us to account for fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.

Finally, contact your lender and let them know of your situation. They may even have a dedicated department that deals with short sales. Ask about their particular procedures. Some lenders will be more able to work with you than others. They may be able to decrease your loan principal or make other arrangements. Your lender will have to give consent for the final sale.