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
8537 Refuge Pointe Circle
North Charleston, SC 29420
The Refuge At Whitehall
Residential
Located in The Refuge at Whitehall this Lowcountry gem features double porches and mature landscaping. The foyer leads you to a spacious, light-fil...
81 Branch Creek Trail
Summerville, SC 29483
Branch Creek
Residential
Conveniently located minutes from historic Summerville with easy access to I26 and Azalea Square, you have everything you need from dining and shop...
106 Summer View Road
Summerville, SC 29486
Felder Creek
Residential
This stunning 4 bedroom, 2.5 bath home is Move-Ready and waiting for its new owners! The HUGE master suite is separated downstairs offering the per...
4299 Persimmon Woods Drive
North Charleston, SC 29420
Coosaw Creek Country Club
Residential
An absolutely breathtaking view is what you will find here on possibly the best golf course homesite in Coosaw Creek Country Club. This half acre h...
215 Bateaux Drive
Summerville, SC 29483
The Ponds
Residential
**Sold Fully Furnished ** Golf cart tours available. Seeking the exclusivity of a 55+ community but with a more relaxed, less congested feel? Disco...
161 Whaler Avenue
Summerville, SC 29486
Cane Bay Plantation
Residential
Welcome to West Lake! As you enter through the Lowcountry front porch of the Madison floorplan, you immediately are greeted by the tranquil views o...
121 Speer Street
Goose Creek, SC 29445
Cokers Crossing
Residential
Come check out this charming 4-bedroom, 2-bathroom home, nestled in the quiet neighborhood of Cokers Crossing, conveniently located near shopping a...
205 Pine Hall Drive
Goose Creek, SC 29445
Liberty Hall Plantation
Residential
Nestled in a serene and vibrant community, this beautiful two-story home offers everything you've been searching for and more. With 4 spacious bedr...
1862 Pineland Drive
Johns Island, SC 29455
Residential
Looking for something out of the ordinary? This home is for you! Sitting on a large lot with no HOA and beautiful trees, this nearly new home provi...
1061 Blockade Runner Parkway
Summerville, SC 29485
River Birch
Residential
You'll want to include this beautiful coastal style home in your search! Nestled on a large corner lot, it's directly across from a huge pond and w...
1250 Chrismill Lane
Mount Pleasant, SC 29466
Brickyard Plantation
Residential
Stunning brick home on a corner lot in one of Mt Pleasant's most sought after neighborhood's, Brickyard Plantation. Beautiful white quartz countert...
612 Blueway Avenue
Summerville, SC 29486
Nexton
Residential
This lovely Halston A floorplan by David Weekley has been lovingly maintained and barely lived in. the sellers really put a lot of thought into thi...
150 Bee Street UNIT #708
Charleston, SC 29401
Bee Street Lofts
Residential
Welcome to Bee Street Lofts! This sophisticated 1 bed/1.5 bath luxury condo brings big city urban style to downtown Charleston. Located on Bee St n...
217 Moon Shadow Lane
Summerville, SC 29485
Arbor Oaks
Residential
Welcome home to 217 Moon Shadow Lane!This charming two story home in the desirable Arbor Oaks neighborhood is sure to be anyone's dream home! This ...
9407 Sun Fountain Drive
Summerville, SC 29485
Wescott Plantation
Residential
Private living spaces upstairs and down in this gorgeous warrantied, new townhome. Walk in to find your spacious foyer with 9 foot ceilings and gor...
9411 Sun Fountain Drive
Summerville, SC 29485
Wescott Plantation
Residential
Beautiful, warrantied new three-level townhome in idyllic Westcott neighborhood. Walk in to find your spacious foyer with 9 foot ceilings and gorge...
113 Carriage Lane
Summerville, SC 29486
Tramway
Residential
Check out this renovation opportunity right in the midst of the great Nexton expansion. Just a short distance to shopping, dining, entertainment, a...
1600 Oakhurst Drive
Mount Pleasant, SC 29466
Rivertowne Country Club
Residential
Lowcountry living at its finest! This elevated 5 bedroom 4 bath home offers stunning views of the lake. On the first floor you will find a formal l...
1240 Creekwatch Trace
Seabrook Island, SC 29455
Seabrook Island
Residential
Marsh front townhouse offers stunning sunset views that will take your breath away. Whether you're looking for a full-time residence or a weekend r...
66 Ponsbury Road
Mount Pleasant, SC 29464
Ion
Residential
Welcome to the I'On community, it's a way of life, not just a place to call home. Explore the charm of this 2,000 + sq. ft, four-bedroom, 2.5 bath ...
417 Whispering Breeze Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
Welcome to this Luxurious 3 bedroom, 2 bath residence on a serene cul-de-sac with exquisite wood flooring, an expansive open-plan living area. The ...