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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13 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005310 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
130 Winding Grove Lane
Moncks Corner, SC 29461
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MLS# 24005306 / Active
Under Construction! New Community! The main living area of this Cottonwood home consists of an open floorplan encompassing the great room with a fi...
Reduced -$320
9 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005305 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
279 Ivory Shadow Road
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 24005287 / Active
READY FOR A SEPTEMBER CLOSING! Located on a highly desirable Pond view homesite! The Denmark with 'D' elevation features Cypress colored siding wit...
Reduced -$5,000
291 Ivory Shadow Road
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 24005282 / Active
READY FOR A SEPTEMBER CLOSING! Located on a highly desirable Pond view homesite! The Davis with 'D' elevation features Sterling colored Siding and ...
Reduced -$5,000
8 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005279 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
7 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005267 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
5 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005258 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
209 Little Oak Drive
Folly Beach, SC 29439
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Residential
MLS# 24005250 / Active
Welcome to 209 Little Oak Dr. on the beautiful gated community of Little Oak Island. This condo offers granite countertops, stainless appliances, c...
Reduced -$11,000
111 Winding Grove Lane
Moncks Corner, SC 29461
The Groves of Berkeley
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MLS# 24005249 / Active
Under construction! Expected completion October 2024. The Sweetgum is a two story single family home ideal for people wanting a private primary bed...
Increase +$1,650
5750 Pilgrim Avenue
Hanahan, SC 29410
Charleston Farms
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MLS# 24005246 / Active
Project update. Foundations beginning end of May first of June. Completion estimated end of September 2024Introducing a stunning new construction o...
Reduced -$100
5752 Pilgrim Avenue
Hanahan, SC 29410
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Residential
MLS# 24005245 / Active
5/13 update. Home will begin foundation by first of June and estimated completion is September of 2024. Introducing a stunning new construction opp...
Reduced -$100
5754 Pilgrim Avenue
Hanahan, SC 29410
Charleston Farms
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MLS# 24005243 / Active
Introducing a stunning new construction opportunity at 5854 Pilgrim Avenue in the heart of Hanahan, SC. This exquisite home, currently under constr...
Reduced -$100
5756 Pilgrim Avenue
Hanahan, SC 29410
Charleston Farms
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MLS# 24005241 / Active
Homes expected to be ready 8/1 to 8/8. Photos are examples of completed unit. 5/11 Update. Home has completed vinyl siding, rough in inspections. I...
Reduced -$5,400
5758 Pilgrim Avenue
Hanahan, SC 29410
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Residential
MLS# 24005238 / Active
Home is completed. Home has completed siding, roof and all framing. Rough in inspections have passed and estimated completion is July of 2024. Intr...
Reduced -$5,000
4 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005235 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
8375 Shell House Road
Edisto Island, SC 29438
Edisto Island
Residential
MLS# 24005229 / Active
Do not miss this wonderful home on peaceful Edisto Island. This well maintained home sits on 1-acre and is less than 4-miles to Edisto Beach. The p...
1536 John Fenwick Lane
Johns Island, SC 29455
The Preserve At Fenwick Plantation
Residential
MLS# 24005220 / Active
This corner lot boasting creek, pond and marsh views is ready to be yours! Do not miss out on this professionally curated home inspired by Serena a...
3 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005144 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
1 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005137 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
14 Lockwood Drive UNIT 6d
Charleston, SC 29401
Ashley House
Residential
MLS# 24005023 / Active
Beautiful Completed RENOVATED Condo With Dead-on VIEWS OF THE ASHLEY RIVER AND Marina. A GREAT FLOOR PLAN FOR SHARING AS EACH BEDROOM HAS IT'S OWN ...
Reduced -$14,000
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