Need to short sell your home?

Don't know what a short sale is? A short sale occurs when you owe more than what the house is worth . This may be attributed to many reasons, but often is a result of a rapidly declining real estate market.

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

How do I proceed with a short sale?

First, determine the true market value of your home. A good real estate professional, like Greater R.I. Properties, LLC, will be able to give you a reasonable idea of what your house will possibly 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, find out your closing costs. My work in this area means I know to take into account fees like title report, appraisal, escrow, property taxes, and agent commissions to tally your final costs at closing.

Finally, contact your lender and make them aware of your situation. They may even have a particular department that manages short sales. Ask about their exact procedures. 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.