Ready to short sell your home?

What is a short sale? A short sale happens when you owe more than what the house is worth . Short sales are usually caused by prices in an area rapidly deflating.

For many homeowners, a short sale is an ideal way to avoid foreclosure or bankruptcy when they can get the lender to write off the difference.

What's involved in a short sale?

First, assess the true market value of your property. An experienced real estate professional, like HREG @ Hollingsworth Center - Lee Hollingsworth, will be able to give you a good idea of what your property should possibly sell for based on a market analysis. Be careful of websites where a computer estimates your house'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 such as title report, appraisal, escrow, property taxes, and agent commissions to calculate your final costs at the closing table.

Finally, call your lender and let them know of your situation. They may even have a particular team that handles short sales. Ask about their specific 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 approve the final sale.