Need to short sell your home?

Don't know what a short sale is? A short sale is when you owe more than what the house is worth . This could be caused by many causes, but commonly is a result of a rapidly declining housing market.

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

How do I proceed with a short sale?

First, assess the true market value of your property. A good real estate professional, like FirstPoint Real Estate, will be able to give you a good idea of what your home would probably sell for based on prior sales of similar houses in the neighborhood. Watch out for 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, calculate your closing costs. My work in this area has taught me to take into account fees such as title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs upon closing.

Finally, contact your lender and notify them of your situation. They may even have a particular department that oversees short sales. Ask about their particular process. 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 give consent for the final sale.