Time to short sell your home?

Not sure what a short sale is? A short sale is when the value of a home is less than the amount of the outstanding loans. This situation is typically caused by values in an area rapidly deflating.

Short sales may be a way for homeowners to preclude foreclosure and pay off their loan with the lender by settling.

What steps do I take in a short sale?

First, determine the true market value of your home. Since paying for a licensed appraiser may not fit your already tight budget, a qualified local real estate professional that knows the current conditions of the Prairieville real estate market is a sound way to get a reliable estimate of your home's value.

Next, find out your closing costs. My experience has taught me to account for fees such as 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 your situation. They may even have a specific department that deals with short sales. Ask about their particular process. Some lenders will be more willing 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 approval for the final sale.