Need to short sell your home?

Not sure 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 factors, but most often is a result of a rapidly declining housing market.

Short sales can be a way for homeowners to avoid foreclosure and get out from under their loan with the lender by settling.

What steps do I take in a short sale?

First, get an idea of the true market value of your property. A good REALTOR^®, like Greater R.I. Properties, LLC, will be able to give you a good idea of what your home will likely sell for based on prior sales of similar houses in the area. 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.

Next, be sure to figure in your closing costs. My work in this area 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, get in touch with your lender and make them aware of your situation. They may even have a dedicated department that oversees short sales. Ask about their exact procedures. Some lenders will be more willing to work with you than others. They may be able to lessen the amount owed or make other arrangements. Your lender will have to approve the final sale.