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
330 Concord Street UNIT Th 9
Charleston, SC 29401
Dockside
Residential
MLS# 23025391 / Active
Enjoy lock-and-leave living in downtown Charleston from this 2 bedroom, 2.5 bath townhouse in Dockside Condominiums. Access this unit from the comm...
Reduced -$36,000
400 Murray Boulevard
Summerville, SC 29483
Farmdale
Residential
MLS# 23025289 / Active
Located next door to the Charleston Equine Clinic, this is an AMAZING DEVELOPMENT OPPORTUNITY or homestead property in the heart of Dorchester Coun...
2238 Catesbys Blf
Seabrook Island, SC 29455
Seabrook Island
Residential
MLS# 23025096 / Active
RARE OCEAN FRONT OPPORTUNITY! Spectacular ocean view from almost every room! Classic family beach house with four bedrooms, four and a half bathroo...
Reduced -$800,000
Merritt Road UNIT B-15
Charleston, SC 29407
The Slips At Ripley
Residential
MLS# 23025039 / Active
Least expensive slip for sale at Ripley Light Marina!!! 17.5' X 60' Boat slip at Ripley Marina. Slip B-15. Located within walking distance of Calif...
Reduced -$10,000
4401 Prices Bridge Lane
Walterboro, SC 29488
Horseshoe
Residential
MLS# 23024790 / Active
Summer temperatures are up and the price to purchase a well-constructed waterfront property is lowered. Private and tucked away, yet conveniently l...
Reduced -$10,000
8500 Palmetto Drive UNIT H102
Isle of Palms, SC 29451
Wild Dunes
Residential
MLS# 23024739 / Active
Lovely 2 bedroom 2 bath first floor oceanfront condominium in Tidewater Villas, nestled in the heart of Wild Dunes. Just steps from your backdoor a...
Reduced -$54,000
185 Wappoo Road
Charleston, SC 29407
Isle De Nemours
Residential
MLS# 23024653 / Active
This picturesque property with stunning views of the Stono River and marsh, consists of approximately 11 acres of land, with approx. 1.4 acres of h...
Reduced -$100,000
6397 Spring Grove Road
Adams Run, SC 29426
Residential
MLS# 23024639 / Active
Whether you are searching for a place to call home in the country, a weekend hunting retreat, a family compound, property for farming, or a develop...
5057 Hwy 174
Hollywood, SC 29449
Residential
MLS# 23024620 / Active
Indulge in the epitome of rural elegance within this exceptional custom home. Begin your journey as you pass through a grand brick and iron gate, e...
222 E Hudson Avenue
Folly Beach, SC 29439
Folly Beach
Residential
MLS# 23024617 / Active
HOME + LOT= Value add! This charming Folly Beach cottage has been renovated from top to bottom, keeping everything you love about Folly and bringin...
Reduced -$4,000
117 Silverbell Lane
Ravenel, SC 29470
Poplar Grove
Residential
MLS# 23024212 / Active
Embrace the Charleston dream with this unparalleled, waterfront haven, nestled in the gated community of Poplar Grove. This custom-build, is a 4-be...
Increase +$100,000
152 Spring Street UNIT F
Charleston, SC 29403
Cannonborough-Elliotborough
Residential
MLS# 23023835 / Active
152 Spring Street Unit F is conveniently located in downtown Charleston just a short walk from all amenities that make Charleston living so desired...
5000 Middleton Drive
Goose Creek, SC 29445
The Oaks
Residential
MLS# 23023832 / Active
The Sago is a two-story, single-family home ideal for families wanting a private primary bedroom on the first floor away from the secondary bedroom...
Increase +$4,000
4000 Middleton Drive
Goose Creek, SC 29445
The Oaks
Residential
MLS# 23023806 / Active
Spread out in the Aspen, a two-story, single-family home featuring an oversized great room and adjoining kitchen for maximizing family time. Privat...
Increase +$4,000
114 Ashley Cove Way
Summerville, SC 29483
Ashley Cove
Residential
MLS# 23023788 / Active
Welcome to the Wilmington floor plan, a home designed for both elegance and comfort, and ready for you to move in immediately. The first floor feat...
Reduced -$5,000
105 Peninsula Drive
Ravenel, SC 29470
Poplar Grove
Residential
MLS# 23023728 / Active
Experience the epitome of modern luxury in this 4-bedroom, 4.5-bathroom masterpiece that defines the concept of your dream home. The provided photo...
Increase +$40,100
3000 Middleton Drive
Goose Creek, SC 29445
The Oaks
Residential
MLS# 23023713 / Active
The Cottonwood is a two-story, single-family home featuring a spacious upstairs primary bedroom with two walk-in closets for optimal storage. Also ...
Reduced -$1,000
2000 Middleton Drive
Goose Creek, SC 29445
The Oaks
Residential
MLS# 23023697 / Active
The Ivy is a two-story, single-family home featuring a formal dining room as you enter, which then opens to the great room and kitchen. The versati...
Reduced -$1,000
29 Broad Street UNIT A, C
Charleston, SC 29401
South Of Broad
Residential
MLS# 23023657 / Active
Imagine owning a piece of Charleston history, a seldom-seen opportunity to purchase a portion of the historic McCauley Davis Building. Sitting amid...
Reduced -$200,000
1880 Andell Bluff Boulevard UNIT C-5
Seabrook Island, SC 29455
Residential
MLS# 23023309 / Active
With an excellent location on C dock, this 35 foot slip has a 15% overhand and can accommodate up to a 38 foot boat. C dock is close to the action ...
Reduced -$15,100
10 Eagleview Drive
Moncks Corner, SC 29461
Foxbank Plantation
Residential
MLS# 23023046 / Active
INCENTIVE!!! (TIED TO PREFERRED LENDER / ATTORNEY) SPEND $35,000 IN UPGRADED OPTIONS: RECEIVE $20,000 OFF & $5K IN CLOSING COSTS! SEE ON SITE AGENT...
Increase +$1,500
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 09-18-2024 9:02 AM 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.
Copyright 2024 Charleston Trident Multiple Listing Service, Inc. All rights reserved.