Do you need to short sell your home?
What is a short sale? A short sale is when the amount of the outstanding loans is greater than the value of the home. This situation is often caused by prices in an area rapidly deflating.
For many homeowners, a short sale is preferential to foreclosure or bankruptcy when they can get the lender to forgive the remainder of the loan.
How do I proceed with a short sale?
First, assess the true market value of your house. Since hiring a licensed appraiser may not fit your already tight budget, an experienced local real estate agent that knows the current conditions of the Austin real estate market is the best way to get an accurate idea of what your home could sell for.
Next, determine your closing costs. My work in this area means I know to consider fees including title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.
Finally, get in touch with your lender and let them know of the situation. They may even have a specific department that handles short sales. Ask about their exact process. Some lenders will be more inclined to work with you than others. They may be able to reduce the amount owed or make other arrangements. Your lender will have to give approval for the final sale.