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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2045 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
MLS# 23013248 / Active
September INCENTIVE: $10,000 IN CLOSING COST ASSISTANCE WITH THE USE OF SELLER'S PREFERRED LENDER/ATTORNEY. Indulge in the coastal Carolina lifesty...
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204 Saunter Court UNIT Lot 29
Johns Island, SC 29455
Hayes Park
Residential
MLS# 23013235 / Active
*NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK Johns Island's only pedestrian-scaled community that elevates your lifes...
Increase +$26,000
200 Saunter Court UNIT Lot 30
Johns Island, SC 29455
Hayes Park
Residential
MLS# 23013233 / Active
*NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK Johns Island's only pedestrian-scaled community that elevates your lifes...
Reduced -$5
205 Saunter Court UNIT Lot 23
Johns Island, SC 29455
Hayes Park
Residential
MLS# 23013037 / Active
*NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK Johns Island's only pedestrian-scaled community that elevates your lifes...
Increase +$22,000
201 Saunter Court UNIT Lot 22
Johns Island, SC 29455
Hayes Park
Residential
MLS# 23013036 / Active
*NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK Johns Island's only pedestrian-scaled community that elevates your lifes...
Reduced -$5
571 Main Road
Johns Island, SC 29455
Residential
MLS# 23011356 / Active
This is it! The keystone corner lot w/ 293ft of frontage on Main Rd & 153ft on Old Pond Rd! .33 acres zoned Rural Commercial which offers flexibili...
Reduced -$25,000
301 Flowering Peach UNIT #203
Charleston, SC 29414
Shadowmoss
Residential
MLS# 23011134 / Active
COMPLETED NEW CONSTRUCTION AVAILABLE NOW!! Middleborough Condominiums, located in the heart of Charleston's garden district in West Ashley offer lu...
Reduced -$10,600
714 Wilson Cemetery Road
Awendaw, SC 29429
Covenant Preserve
Residential
MLS# 23011031 / Active
Relax and escape to the natural paradise of Awendaw, a beautiful coastal town, just north of Charleston and Mt. Pleasant! Bordering the Francis Mar...
516 Hayes Park Boulevard UNIT Lot 1
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Increase +$67,635
1880 Andell Bluff Boulevard UNIT D-16
Seabrook Island, SC 29455
Seabrook Island
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MLS# 23010686 / Active
This 30 ft boat slip allows up to 15% overage and is positioned on the downstream side of ''D'' dock for easy ingress and egress. It is located mid...
Reduced -$5,000
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Isle of Palms, SC 29451
Residential
MLS# 23010577 / Active
Contemporary Lowcountry home one block from the beach on Cameron Blvd. House plans may be modified or exchanged for a new design until the foundati...
Increase +$20,000
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Sullivans Island, SC 29482
Sullivans Island
Residential
MLS# 23010360 / Active
New co-ownership opportunity: Own one-eighth of this turnkey home, professionally managed by Pacaso. Casual elegance flows through this modern isla...
Reduced -$27,000
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Sullivans Island, SC 29482
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MLS# 23010359 / Active
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Sullivans Island, SC 29482
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Residential
MLS# 23010357 / Active
New co-ownership opportunity: Own one-eighth of this turnkey home, professionally managed by Pacaso. Casual elegance flows through this modern isla...
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1620 Home Farm Road
Mount Pleasant, SC 29464
Home Farm
Residential
MLS# 23009623 / Active
This Charleston Charmer is True Stunner and will ''Wow'' you with its Incredible Marshfront Views of Sullivan's Island and Magnificent 360 Degree R...
Reduced -$300,000
2026 Little Avenue
North Charleston, SC 29405
Union Heights
Residential
MLS# 23009018 / Active
Great investment opportunity located in the area of North Charleston with continuous revitalization going on and property values is on the rise. Lo...
Reduced -$10,100
154 Lake Timicau Lane
Dewees Island, SC 29451
Dewees Island
Residential
MLS# 23008266 / Active
This beautiful home has been recently updated and boasts four spacious bedrooms and three modern bathrooms. The home features breathtaking views of...
Reduced -$75,000
1000 Middleton Drive
Goose Creek, SC 29445
The Oaks
Residential
MLS# 23008230 / Active
Enjoy all the conveniences of ranch-style living in the single-story Beech home. Enter this inviting and spacious front entry with guest and second...
Increase +$6,000
308 N Live Oak Drive
Moncks Corner, SC 29461
Residential
Three bedroom home in Growing Town of Moncks Corner. Convenient Location with Great Schools. Several upgrades in progress, with New Kitchen and Bat...
105 Risewell Court UNIT Lot 14
Johns Island, SC 29455
Hayes Park
Residential
MLS# 23006024 / Active
NO CHANGES - SPEC HOME UNDER CONSTRUCTION* NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK - Johns Island's only pedestri...
Reduced -$30,100
114 Berkeley Circle
Summerville, SC 29483
Residential
MLS# 23000210 / Active
Great business opportunity to be in the heart of Summerville! 0.83ac Lot located just off of N Main Street near EarthFare,on the road leading to th...
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