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
2026 Little Avenue
North Charleston, SC 29405
Union Heights
Residential
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
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
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
NO CHANGES - SPEC HOME UNDER CONSTRUCTION* NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK - Johns Island's only pedestri...
Reduced -$15,000
114 Berkeley Circle
Summerville, SC 29483
Residential
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...
Lot 2 Hendorrich Trail
Huger, SC 29450
Residential
Beautiful 2 story traditional home located minutes from Nucor, SC Ports Authority, Mt. Pleasant, Isle of Palms or Downtown Charleston. Your childre...
Increase +$10,200
Lot 1 Hendorrich Trail
Huger, SC 29450
Residential
Beautiful 1 story traditional home located minutes from Nucor, SC Ports Authority, Mt. Pleasant, Isle of Palms or Downtown Charleston. Your childre...
Increase +$6,215
120 Power House Road
Moncks Corner, SC 29461
Residential
Great home with an open floor plan on one level. This home sits off the main road and is being offered with .75 acres to be subdivided prior to clo...
Reduced -$14,000
1478 Highway 52
Moncks Corner, SC 29461
Residential
Beautiful oak-tree covered property with a great floor plan that includes a attached full in-law suite with its own private entrance, full kitchen,...
Reduced -$49,000
40 Waycross Drive
Ridgeville, SC 29472
Timothy Lakes
Residential
PROPOSED CONSTRUCTION: NOW SELLING PHASE 3! Introducing the Morgan at Timothy Lakes. Find your very own slice of paradise in the community of Timot...
Increase +$5,000
39 Waycross Drive
Ridgeville, SC 29472
Timothy Lakes
Residential
PROPOSED CONSTRUCTION: Introducing the Putnam at Timothy Lakes. Find your very own slice of paradise in the community of Timothy Lakes. Located nea...
Increase +$5,000
52 Westfield Drive
Ridgeville, SC 29472
Timothy Lakes
Residential
PROPOSED CONSTRUCTION: NOW SELLING PHASE 3! Introducing the Brewster at Timothy Lakes. Find your very own slice of paradise in the community of Tim...
Increase +$5,000
15 Darby Meadow Lane
Ridgeville, SC 29472
Timothy Lakes
Residential
PROPOSED CONSTRUCTION -- The Ludington. Step through the foyer where you can access the guest bedroom/full bath or head into the spacious family ro...
Increase +$5,000
13 Edisto Crossing Court
Ridgeville, SC 29472
Timothy Lakes
Residential
PROPOSED CONSTRUCTION: NOW SELLING PHASE 3! Introducing the Mercer at Timothy Lakes. Find your very own slice of paradise in the community of Timot...
Increase +$5,000
44 Edisto Crossing Court
Ridgeville, SC 29472
Timothy Lakes
Residential
PROPOSED CONSTRUCTION: NOW SELLING PHASE 3! Introducing the Adams at Timothy Lakes. Find your very own slice of paradise in the community of Timoth...
Increase +$5,000
9 Edisto Crossing Court
Ridgeville, SC 29472
Timothy Lakes
Residential
PROPOSED CONSTRUCTION: NOW SELLING PHASE 3! Introducing the Townsend at Timothy Lakes. Find your very own slice of paradise in the community of Tim...
Increase +$5,000
1972 Long Creek Road
Wadmalaw Island, SC 29487
Longcreek Plantation
Residential
Closing costs negotiable. Private waterfront 6-acre estate on Wadmalaw Island. Idyllic setting with unsurpassed views on Bohicket Creek. Gourmet re...
Reduced -$55,000
268 Little Oak Island Drive
Folly Beach, SC 29439
Little Oak Island
Residential
Looking for the ultimate in peaceful waterfront view living? There are over 1150 sq ft of wrap-around covered porches and 180 sq ft of open deck to...
Reduced -$100,000
100 Hannibal Trail
Ridgeville, SC 29472
Huckleberry Hill
Residential
Nine properties for sale in this listing! One is a cottage on the Edisto River with two more river front lots, one on each side of the river cottag...
367 Pelican Flight Drive
Dewees Island, SC 29451
Dewees Island
Residential
Exquisite oceanfront home on the private island of Dewees, boasting more than 1200 acres of undisturbed sandy beaches. Imagine an opportunity to se...
Increase +$510,000