Are you ready to short sell your home?

Don't know what a short sale is? A short sale happens when the value of a home is less than what is owned. This situation is usually 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 forgive the difference.

What steps do I take in a short sale?

First, figure out the true market value of your home. A qualified REALTOR^®, like Villar and Company Real Estate, will be able to give you a realistic idea of what your home will likely sell for based on prior sales of similar houses in the area. 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, find out your closing costs. My experience has taught me to consider fees including title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at the closing table.

Finally, call your lender and let them know of the situation. They may even have a particular team that handles short sales. Ask about their exact procedures. Some lenders will be more inclined to work with you than others. They may be able to lessen how much you owe or make other arrangements. Your lender will have to approve the final sale.