Need to short sell your home?

What is a short sale? A short sale is when the value of a home is less than the amount of the outstanding loans. This can be attributed to many factors, but frequently is a result of a rapidly declining housing market.

For many homeowners, a short sale is an ideal way to prevent foreclosure or bankruptcy when they can negotiate with the lender to forgive the difference.

How do I proceed with a short sale?

First, figure out the true market value of your home. For those whose finances are already stretched, paying a licensed appraiser may not be feasible. Therefore, an experienced local REALTOR^® that knows the current conditions of the Prairieville real estate market is a sound way to get a reliable idea of your home's worth.

Next, find out your closing costs. My experience has taught me to account for fees including title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at the closing table.

Finally, contact your lender and notify them of the situation. They may even have a special department that manages short sales. Ask about their exact procedures. Some lenders will be more able to work with you than others. They may be able to decrease the amount owed or make other arrangements. Your lender will have to agree to the final sale.