Is it time to short sell your home?
Not sure what a short sale is? A short sale happens when the value of a home is less than what is owned. Short sales are typically the result of home values 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 difference.
What steps do I take in a short sale?
First, find out the true market value of your home. Since paying for a licensed appraiser may not work with your already tight budget, a qualified local real estate agent that knows the current conditions of the North Kingstown real estate market is a smart way to get an accurate estimate of what your home could sell for.
Next, determine your closing costs. My experience means I know to take into account fees including title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs upon closing.
Finally, contact your lender and tell them of the situation. They may even have a special team that manages short sales. Ask about their specific steps. Some lenders will be more willing to work with you than others. They may be able to decrease how much you owe or make other arrangements. Your lender will have to give consent for the final sale.