Do you need to short sell your home?

What is a short sale? A short sale occurs when the value of a home is less than the amount of the outstanding loans. This may be attributed to many factors, but most often is a result of a rapidly declining real estate market.

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

How do I proceed with a short sale?

First, assess the true market value of your house. Since paying for a licensed appraiser may not fit your already tight budget, an experienced local real estate professional that knows the current conditions of the Wilmington real estate market is the best way to get a reliable estimate of your home's worth.

Next, determine your closing costs. My experience means I know to consider fees including title report, appraisal, escrow, property taxes, and agent commissions to estimate your final costs at the closing table.

Finally, contact your lender and make them aware of your situation. They may even have a dedicated team that handles short sales. Ask about their exact steps. Some lenders will be more able 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.