Short sales allow a homeowner to close on the sale of property when it is worth less than the debts secured by it. Typically, the lender agrees to accept the net proceeds from a closing in exchange for releasing its lien. Lenders are not agreeing to a short sale to be generous, they are convinced that it will come out better than it would by foreclosing on the home and pursuing the borrower for its losses.
While the procedures for a short sale will vary from lender to lender, most lenders need to be convinced of the following:
The Sales Price Is Not Too Low
The sales price of contract is equal to what they would be able to sell the property for after a foreclosure. While the lender may review the market analysis provided by the agent, they will often confirm the market analysis by contacting its own sources, such as an appraiser.
All Costs Associated With The Sale
The commission for the transaction is equal to the commission it would pay its agent for selling the home after foreclosure. The lender will need to know as precisely as possible the amount of proceeds it can expect to receive from the sale.
A Good Reason They Should Accept It
The lender will want an explanation of the circumstances, which caused short sale in the first place. These usually include death, medical problems, divorce, loss of a job, or a job displacement requiring a move.
A Financial Package On The Seller
The seller doesn't have the resources to make up the mortgage shortfall on their own. The lender will require a full assessment of the financial condition of the seller. Financial statements, income and expenses, tax returns and the seller's paycheck stubs should be provided. The seller's financial condition is a tricky proposition. While the lender will be reluctant to approve a compromise without reviewing strength of the seller, this information will help the lender in pursuing the seller for a post-foreclosure deficiency if the short sale does not take place.
So What Is The Risk?
A seller with few assets, little or no income, and a willingness to file bankruptcy has little to lose by providing this information. Those with other assets, a good job with garnishable wages, or a desire to avoid bankruptcy will put themselves at risk in the process. Those considering a short sale need expert legal advice regarding the wisdom of submitting financial information to the lender.
Modify Search Criteria
8437 Taylor Plantation Road
North Charleston, SC 29420
Taylor Plantation
Residential
Discover modern comfort and convenience in this two-story home nestled within the sought-after Dorchester 2 school district, within the prestigious...
503 Eagleview Drive
Moncks Corner, SC 29461
Foxbank Plantation
Residential
CLOSE SEPT/OCT 2024! LIST PRICE REFLECTS INCENTIVE & $5K IN CLOSING COSTS. MUST USE PREFERRED LENDER & CLOSING ATTORNEY FOR INCENTIVE. SEE SITE AGE...
232 Driftwood Lane
Edisto Island, SC 29438
Wyndham Ocean Ridge
Residential
Desirable 1st floor Villa overlooking the 17th fairway of the Plantation Course & its lagoon. Compact but well appointed. Enjoy the open L/D/K w/ d...
1314 Locals Street
Summerville, SC 29485
Summers Corner
Residential
Discover HORIZONS, a place where you can wake up with countless opportunities but no commitments. Where new friends share stories, ideas and advent...
495 Eagleview Drive
Moncks Corner, SC 29461
Foxbank Plantation
Residential
ESTIMATED COMPLETION OCT/NOV 2024! PRICE REFLECTS INCENTIVE PLUS $5K CLOSING COSTS! MUST USE PREFERRED LENDER/ATTORNEY FOR INCENTIVES. Welcome to t...
1109 Parkway Drive
Mount Pleasant, SC 29464
Snee Farm
Residential
Welcome to the opportunity to live in the highly sought-after Snee Farm! This centrally located community offers convenient access to beaches, I-52...
5827 Moore Street
Hanahan, SC 29410
Port Park
Residential
Exceptional Investment Opportunity. Situated in a prime location with easy access to I-26, 526 Northwoods Mall, Wannamaker Park, Trident Technical ...
143 Island Park Drive
Charleston, SC 29492
Daniel Island Park
Residential
Discover this exquisite Daniel Island Park home, boasting expansive living areas, inviting outdoor spaces, and picturesque views of the Daniel Isla...
649 Water Lily Trail
Summerville, SC 29485
Summers Corner
Residential
(Professional Pics Coming Friday)Welcome to your stunning 4-bedroom, 3.5-bathroom Charleston-style home nestled in the picturesque Villages of Summ...
9609 Blue Jay Court
Ladson, SC 29456
Avenue Of Oaks
Residential
One side of duplex just updated to include new vinyl plank flooring, new stainless steel kitchen appliances, reconditioned counter tops in kitchen ...
609 King Street UNIT #747
Charleston, SC 29403
Cannonborough-Elliotborough
Residential
Coming in 2026! The Peninsula of Charleston is an ownership-model, continuing care retirement community (CCRC) on highly desirable upper King Stree...
609 King Street UNIT #543
Charleston, SC 29403
Cannonborough-Elliotborough
Residential
Coming in 2026! The Peninsula of Charleston is an ownership-model, continuing care retirement community (CCRC) on highly desirable upper King Stree...
2333 High Tide Drive
Charleston, SC 29414
Mclaura Bluff
Residential
Quiet Neighborhood in a great location, near schools, health care facilities, libraries, and shopping. Enjoy sipping sweet tea on your large front ...
237 River Oak Drive
Mount Pleasant, SC 29464
Grassy Creek
Residential
Welcome home to 237 River Oak! This beautiful MARSH FRONT home located in South Mt. Pleasant's Grassy Creek neighborhood sits on a large private .3...
1064 Hunters Trace
Mount Pleasant, SC 29464
Hunters Trace
Residential
Just 3.5 miles from the Ravenel Bridge and 5.5 miles to Sullivans Island, and one of the lowest priced 3 bedroom homes in all of Mount Pleasant, th...
1546 Fishbone Drive
Johns Island, SC 29455
Fenwick Woods
Residential
Beautifully maintained home with open, flexible floor plan, vaulted ceilings, primary down with many upgrades such as roller shades, built in speak...
7967 Highway 162
Hollywood, SC 29449
Hollywood
Residential
Nestled on a sprawling 1-acre parcel of serene countryside, this charming farm offers a tranquil escape from the hustle and bustle of city life. Lo...
1009 Marsh Royal Street
Summerville, SC 29485
Summers Corner
Residential
The Elliot Plan- This traditional Charleston style home features a large front, covered porch and study downstairs. The entire first floor is compl...
2906 Oxford Place
Charleston, SC 29414
Old Towne Villas
Residential
Welcome to your dream townhouse! This recently updated home boasts 1440 square feet of well-designed living space. It features two spacious bedroom...
8817 Citronella Way
North Charleston, SC 29406
Magnolia Pointe
Residential
The Avery is a ranch-style plan with three bedrooms, two full baths, a spacious family room, a kitchen with an island and pantry, a covered patio, ...
60 Barre Street
Charleston, SC 29401
Harleston Village
Residential
Welcome to 60 Barre Street, a stunning gem in the heart of downtown Charleston's historic Harleston Village neighborhood. This impeccably maintaine...