Do I Need To Sell Through A Short Sale

Seven Easy Steps To Determine If you Need To Do A Short Sale

Step 1:
Verify the value of your property. If you are selling the property through a real estate broker, your broker will provide you with an estimate of market value. If you are selling the property yourself, do your own market analysis of the area and your property.

Step 2:
Add up all the costs of selling the property. If you are using the services of a real estate broker, the broker will provide an estimate of closing costs. If you are selling the property on your own (for sale by owner), call a local title company or real estate attorney and ask, as a seller, what the closing costs will be.

Step 3:
Determine the amount owed against the property. This will be the total of all loans against the property. Do not forget to include any taxes owed or homeowners’ association dues.

Step 4:
Do the calculations. Subtract the total amount owing against the property from the estimated proceeds of the sale. On a short sale, this will be a negative number. This number should be greater than $10,000.00.

Step 5:
Do you have any means to pay this shortage? Savings, retirement fund, friends or family, credit cards?

Step 6:
Has your financial picture changed for the worst since you purchased this property? If yes, has your income declined? Medical problems, lost your job, death of a spouse, etc.

Step 7:
If the answer to step number 4 is a negative number greater than $10,000.00 and step number 5 is “No” and step number 6 is “Yes” you are a short sale candidate.