While many lenders will have varying requirements and may demand that a borrower submit different types of documentation, the following should be treated as a guideline of what is required in a pursuing a short sale.
Contact Your Lender Immediately:
You need to make the effort to find the right person responsible for handling a potential short sale. You want to talk to person in charge of loss mitigation for the lender, you want a supervisor's name, the name of the individual capable of making these kinds of decisions.
Submit a Letter of Authorization:
Your lenders will not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, Title Company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. You should include the following information: name, address, loan number, third party agents involved and contact information on both the agents and yourself.
A Preliminary Estimate of Your Lenders Proceeds:
A preliminary HUD-1 settlement statement that indicates the sales price you are under contract for and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your third party agent (realtor, title company or lawyer) should be able to prepare this for you. The bottom line should not indicate any net proceed to the seller.
Your Circumstances, In The Form of a Hardship Letter:
A complete description of the facts that brought you to financially challenging situation and why you have a valid reason for the lender to accept less than full payment. Lenders can understand many circumstances are unavoidable, loss of job, death, divorce, etc., but they are not very compassionate to situations involving dishonesty, misrepresentation or criminal (or criminally negligent) behavior.
A Complete Financial Statement:
Be truthful about your current financial situation and disclose your assets and liabilities. Provide information on savings accounts, money market accounts, stocks or bonds, cash, real estate or anything of tangible value. Your lender will need to be assured that you cannot pay back any shortfall in the short sale transaction.
Proof of Valuation:
Many homeowners caught by the current downturn of the real estate market have lost significant equity in their home. This should be part and parcel as to why you cannot sell your home for enough to pay off the existing lien. You need to substantiate this value to the lender through a proof of valuation. In declining value to the lender you could present a fully completed appraisal, a comparative market analysis (CMA) or a broker’s opinion of value.
Your Purchase Agreement and Listing Agreement:
The lender should want a copy of the executed offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to allow payment of certain items such as home protection plans or seller concessions inspections.
If your package is complete, the facts are accurate and the circumstances speak for themselves, the lender will approve your short sale. Within the ongoing communications and negotiations, you should ask that the lender not report any adverse credit references to the credit reporting agencies, although they would be under no obligation to accommodate this request.
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615 Faulkner Drive
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Nestled within the vibrant short-term rental overlay of Charleston's historic district, this exceptional property presents an enticing opportunity ...
2422 Highway 174
Edisto Island, SC 29438
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MLS# 23019187 / Active
Ten-minute drive to Edisto Beach!! This lovely home has 3 bedrooms, 2 full baths with approx.1800 sq ft on 1.99 acres of land+/-.Hardwood floors th...
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104 Aplomb Alley
Charleston, SC 29414
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1880 Andell Bluff Boulevard UNIT E-8
Seabrook Island, SC 29455
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MLS# 23019107 / Active
Great boat slip at Bohicket Marina, the 3rd spot from the end of E dock. Easy to dock from the Bohicket River. This slip is situated midway down th...
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153 Dewees Inlet Drive
Dewees Island, SC 29451
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Reduced -$100,000
133 Edistodane Lane
Ridgeville, SC 29472
Residential
MLS# 23019024 / Active
Back on the Market due to no fault of the Seller! This is a FULLY RENOVATED home well located private lot with a pond right in the backyard! You ca...
Increase +$9,000
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Walterboro, SC 29488
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PRICE IMPROVEMENT!! THIS WILL BE YOUR ONLY OPPORTUNITY to PURCHASE This STUNNING Colonial Revival Home with Traditional Flare, built in 1950, boost...
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940 Center Street
Mount Pleasant, SC 29464
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MLS# 23018900 / Active
***Move In Ready *** Location! Location! Location! Welcome Home to this cozy brick ranch nestled on a suitable sized corner lot in highly sought af...
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244 Corvus Street
Summerville, SC 29483
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Increase +$2,000
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102 Magazine Court
Summerville, SC 29485
Ashborough
Residential
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Johns Island, SC 29455
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The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Charleston Trident Multiple Listing Service. Real estate listings held by brokerage firms other than EXP Realty LLC are marked with the Broker ReciprocitySM logo or the Broker ReciprocitySM thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers. Last updated on 05-19-2024 3:03 PM EST .
The broker providing these data believes them to be correct, but advises interested parties to confirm them before relying on them in a purchase decision.
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