Don't know what a short sale is? A short sale happens when the amount of the outstanding loans are greater than the amount for which the home could sell. This situation is usually caused by values in an area rapidly deflating.
Short sales could be a way for homeowners to avoid foreclosure and get out from under their loan with the lender by settling.
How to do a short sale:
First, find out the true market value of your house. An experienced REALTOR®, like those at Benchmark Realty, will be able to give you a reasonable idea of what your house will likely sell for based on a market analysis. Be cautious 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.
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Next, calculate your closing costs. The qualified agents at Benchmark Realty will consider fees including title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs upon closing.
Finally, contact your lender and notify them of your situation. They may even have a special department that handles short sales. Ask about their specific procedures. Some lenders will be more able to work with you than others. They may be able to reduce your loan principal or make other arrangements. Your lender will have to approve the final sale.