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.
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1452 Joy Avenue
Charleston, SC 29407
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Moncks Corner, SC 29461
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MLS# 24010154 / Active
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Increase +$1,500
352 Hillman Trail Drive
Moncks Corner, SC 29461
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Residential
MLS# 24010145 / Active
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Increase +$1,500
738 Opal Wing Street
Moncks Corner, SC 29461
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MLS# 24010141 / Active
PRICE REFLECTS DISCOUNT INCENTIVE PLUS ADDITIONAL CLOSING COSTS AVAILABLE MUST USE PREFERRED LENDER/ATTORNEY FOR INCENTIVES. ESTIMATED COMPLETION O...
Increase +$1,500
716 Opal Wing Street
Moncks Corner, SC 29461
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Residential
MLS# 24010137 / Active
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Moncks Corner, SC 29461
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MLS# 24010136 / Active
ESTIMATED COMPLETION OCT 20241 LIST PRICE REFLECTS INCENTIVE WITH USE OF PREFERRED LENDER/ATTORNEY PLUS ADDITIONAL CLOSING COSTS AVAILABLE. MUST US...
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Charleston, SC 29412
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Isle of Palms, SC 29451
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3237 Cottonfield Drive
Mount Pleasant, SC 29466
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MLS# 24010049 / Active
Welcome to 3237 Cottonfield Drive. This stunning home is set back nicely on a private 1.46 acre beautifully landscaped tidal creek lot in the gated...
Reduced -$100,000
204 McClellan Way
Summerville, SC 29483
Hampton Woods
Residential
MLS# 24010046 / Active
This is an ''AS IS'' MODEL HOME!! There's a special incentive that's reflected in the price, and it's tied to using the preferred lender and closin...
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5802 Palmetto Drive UNIT B-408
Isle of Palms, SC 29451
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MLS# 24010039 / Active
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Charleston, SC 29414
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MLS# 24010033 / Active
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MLS# 24010022 / Active
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17 Locomotive Road
Cottageville, SC 29435
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Residential
MLS# 24010012 / Active
**Country Living**Welcome to this spacious 4 bedroom 2 bathroom home, situated on a 1 acre lot. The lot has plenty of room for a garden and pets.
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MLS# 24010007 / Active
Get ready to celebrate the holidays in style at 149 Mitch Lane in Holly Hill, SC! Construction is set to begin mid-August on this exceptional, bran...
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