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.
Modify Search Criteria
4169 Jean Laffite Road
Hollywood, SC 29449
Royal Harbor
Residential
Enjoy the peace and quiet that this newly constructed home offers in a secure and pastoral setting. Only minutes from Charleston, this community of...
2458 Golf Oak Park
Seabrook Island, SC 29455
Residential
Beautiful custom built home located on # 10 green & 11 tee box of Crooked Oaks. Great view of the lagoon & the golf holes. Lovely back yard with ni...
1267 Dingle Road
Mount Pleasant, SC 29466
Royal Palms
Residential
This exceptional End-Unit townhome is centrally located in Mount Pleasant and offers the perfect blend of quality, convenience, and privacy. This h...
1124 Dickson Avenue
Hanahan, SC 29410
Yeamans Park 2
Residential
Nestled in the charming heart of Hanahan, this delightful 3-bedroom, 1-bath brick ranch home offers comfort and convenience in a serene setting. As...
1334 Old Rosebud Trail
Mount Pleasant, SC 29429
Pepper Plantation
Residential
Prepare to be dazzled by this lovely home situated on more than 3 acres in peaceful Pepper Plantation. Complete with a huge front porch, pool, spa,...
1131 Glorious Way
Summerville, SC 29485
Summers Corner
Residential
Welcome to Horizons, an exclusive 55+ gated active adult community situated in the highly desirable Summers Corner masterplan. Residents enjoy low-...
104 Astor Court
Summerville, SC 29486
Sangaree
Residential
Welcome to 104 Astor Court! This charming single-story home, nestled at the end of a cul-de-sac, is conveniently close to everything that Downtown ...
3190 Morningdale Drive
Mount Pleasant, SC 29466
Ivy Hall
Residential
Welcome to this charming single story home in the Ivy Hall community in Mt Pleasant! This lovely one-story home was just freshly painted white thro...
1332 S Edgewater Drive
Charleston, SC 29407
Edgewater Park
Residential
Welcome to an exceptional opportunity in the heart of West Ashley. This spacious 4-bedroom, 3-bathroom brick ranch home offers a canvas for your vi...
718 Newbury Street
Summerville, SC 29486
Cane Bay Plantation
Residential
Come live your best life in the heart of beautiful Waterside in Cane Bay! This beautiful four bedroom, three and a half bath home is nestled in a c...
305 Factors Walk
Summerville, SC 29485
Gahagan
Residential
Welcome to this charming 4 bedroom, 2 bath home nestled on a spacious corner lot landscaped with blooming azaleas just minutes to historic downtown...
2602 Hidden Cove Drive
Moncks Corner, SC 29461
Hidden Cove
Residential
ALL NEW Completely Remodeled Beautiful Bottom Floor Condo 2 Bedroom 2 BathAll new Tile Floors, New Kitchen Cabinets, New Never used Appliances, Gra...
3351 River Landing Road
Johns Island, SC 29455
River Landing
Residential
24 hour notice required.Interior photos coming soon! Luxurious Lowcountry Living Awaits in River LandingImmerse yourself in the epitome of Johns Is...
104 Race Club Road
Summerville, SC 29483
Country Club Estates
Residential
MUST SEE updated two-story home located in Country Club Estates on a .54 ACRE LOT. Boasting 5 bedrooms, 3.5 bathrooms, and a 2-car garage, this res...
811 Sheldon Road
Charleston, SC 29407
Moreland
Residential
Beautifully updated brick ranch with NO HOA just 5 minutes from Downtown Charleston! Situated on a quiet street in the Moreland neighborhood of Wes...
2158 Medway Road
Charleston, SC 29412
Riverland Terrace
Residential
Completely renovated home in Riverland Terrace neighborhood. It has all new electrical, plumbing, HVAC, exterior siding, roof, windows, insulation,...
319 Regatta Way
Summerville, SC 29486
Cane Bay Plantation
Residential
This home shouldn't be missed! Stunning home built in 2016 with absolutely no detail spared. An exciting opportunity to purchase a Tangerly Oak flo...
265 Oak View Way
Summerville, SC 29483
The Ponds
Residential
Welcome to your dream home in The Ponds! This beautiful and spacious residence is situated on a large and attractive lot, offering a perfect blend ...
2907 Waterleaf Road
Johns Island, SC 29455
Whitney Lake
Residential
Welcome to this charming lakefront home in Whitney Lakes! This double balcony, Charleston style home offers panoramic lake views on both levels! Wh...
1437 Clancy Road
Mount Pleasant, SC 29466
Hamlin Plantation
Residential
Nestled in the heart of Hamlin Plantation, this end unit town home exudes a refined elegance that is truly unmatched. Boasting an array of sophisti...
2441 Fulford Court
Mount Pleasant, SC 29466
Chadbury Village
Residential
3 bedroom, 2.5 bath charmer available now in desirable Chadbury Village. Meticulously maintained by the owner, this one is truly move in ready. You...