While many lenders will have varying requirements and may demand that a borrower submit different types of documentation, the following should be treated as a guideline of what is required in a pursuing a short sale.
Contact Your Lender Immediately:
You need to make the effort to find the right person responsible for handling a potential short sale. You want to talk to person in charge of loss mitigation for the lender, you want a supervisor's name, the name of the individual capable of making these kinds of decisions.
Submit a Letter of Authorization:
Your lenders will not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, Title Company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. You should include the following information: name, address, loan number, third party agents involved and contact information on both the agents and yourself.
A Preliminary Estimate of Your Lenders Proceeds:
A preliminary HUD-1 settlement statement that indicates the sales price you are under contract for and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your third party agent (realtor, title company or lawyer) should be able to prepare this for you. The bottom line should not indicate any net proceed to the seller.
Your Circumstances, In The Form of a Hardship Letter:
A complete description of the facts that brought you to financially challenging situation and why you have a valid reason for the lender to accept less than full payment. Lenders can understand many circumstances are unavoidable, loss of job, death, divorce, etc., but they are not very compassionate to situations involving dishonesty, misrepresentation or criminal (or criminally negligent) behavior.
A Complete Financial Statement:
Be truthful about your current financial situation and disclose your assets and liabilities. Provide information on savings accounts, money market accounts, stocks or bonds, cash, real estate or anything of tangible value. Your lender will need to be assured that you cannot pay back any shortfall in the short sale transaction.
Proof of Valuation:
Many homeowners caught by the current downturn of the real estate market have lost significant equity in their home. This should be part and parcel as to why you cannot sell your home for enough to pay off the existing lien. You need to substantiate this value to the lender through a proof of valuation. In declining value to the lender you could present a fully completed appraisal, a comparative market analysis (CMA) or a broker’s opinion of value.
Your Purchase Agreement and Listing Agreement:
The lender should want a copy of the executed offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to allow payment of certain items such as home protection plans or seller concessions inspections.
If your package is complete, the facts are accurate and the circumstances speak for themselves, the lender will approve your short sale. Within the ongoing communications and negotiations, you should ask that the lender not report any adverse credit references to the credit reporting agencies, although they would be under no obligation to accommodate this request.
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3189 Edenvale Road
Johns Island, SC 29455
Residential
MLS# 24007460 / Active
Welcome to Eden, a serene 35-acre sanctuary on Johns Island, Charleston. This estate blends nature's beauty with modern comforts. A winding drivewa...
424 Bowstring Drive
Huger, SC 29450
Bridges At Seven Lakes
Residential
MLS# 24007434 / Active
This is the one with OVER 59k in upgrades on this coastal stunner located in Bridges at Seven Lakes subdivision in Huger. Sprawled across a generou...
Reduced -$10,000
8217 Little Sydneys Way
North Charleston, SC 29406
Baker Plantation
Residential
MLS# 24007396 / Active
Looking for a nice one story home in a great neighborhood? Here it is! This cute 3BR/2BA house is priced to sell. Low maintenance LVP flooring, Ope...
Reduced -$25,000
135 Conifer Lane
Kiawah Island, SC 29455
Kiawah Island
Residential
MLS# 24007377 / Active
Stunning 5 Bedroom, 5 Bathroom Home with a fabulous pool, deck as well as a screen porch in the heart of West Beach. This is an absolute turn key p...
Reduced -$100,000
40 Laurens Street
Charleston, SC 29401
Ansonborough
Residential
MLS# 24007355 / Active
The grandeur of Downtown Charleston awaits at the Stephen Shrewsbury House in the coveted Ansonborough neighborhood. A solid-brick single house, 40...
1556 John Fenwick Lane
Johns Island, SC 29455
The Preserve At Fenwick Plantation
Residential
MLS# 24007335 / Active
Introducing a stunning new construction home nestled in a serene location on Johns Island. This 3430sqft residence offers modern luxury and conveni...
Increase +$37,000
105 Dahlia Place
Summerville, SC 29483
Robynwyn
Residential
MLS# 24007271 / Active
Welcome to 105 Dahlia Place, strategically built on a cut-de-sac, a pristine contemporary residence that promises both luxury and comfort, nestled ...
2334 Treescape Drive UNIT #2007
Charleston, SC 29414
Ashleytowne Village
Residential
Welcome to your dream home nestled in a prime location close to downtown amenities yet surrounded by nature's tranquility. This fully renovated hav...
4233 Haulover Drive
Johns Island, SC 29455
Kiawah River Estates
Residential
MLS# 24007225 / Active
Huge reduction, reduce by $85,100.00 motivated sellers. This is a wonderful opportunity to be a resident who can join the Kiawah Island Resort Gove...
Reduced -$55,000
2 McDonough Road UNIT C-6
Folly Beach, SC 29439
Mariners Cay
Residential
MLS# 24007193 / Active
Dock your boat at this conveniently located, gated boat slip at Mariners Cay. The boat slip provides easy access to Folly River and the stunning co...
134 Morning View Way
Moncks Corner, SC 29461
Lakeview at Kitfield
Residential
MLS# 24007179 / Active
Move in ready! This homesite offers a wooded lot. Welcome to the Elston plan, step into luxury with this 2-story floor plan with 4 bedrooms and 2 1...
Reduced -$5,000
145 Morning View Way
Moncks Corner, SC 29461
Lakeview at Kitfield
Residential
MLS# 24007175 / Active
READY THIS SUMMER! The ELSTON floorplan features a large kitchen and great room divided by a kitchen island. On the second floor, you are greeted b...
Reduced -$5,000
151 Morning View Way
Moncks Corner, SC 29461
Lakeview at Kitfield
Residential
MLS# 24007169 / Active
READY THIS FALL! The Archer floorplan features a foyer that leads into an open kitchen and living room area. The first floor features a spacious ow...
Reduced -$5,000
313 Sherrod Park Lane
Summerville, SC 29486
Nexton
Residential
MLS# 24007150 / Active
AVAILABLE NOW! Limited time incentive up to $20k Use As You Choose available on this home! Welcome home to 313 Sherrod Park Lane. The Azalea is a t...
Increase +$11,924
127 Green Passage Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 24007133 / Active
Beautiful home ready for you in the Pine Hills section of Cane Bay Plantation. Featuring amenities like a resort style pool, walking and bike paths...
Reduced -$5,001
115 Palfrey Drive
Ridgeville, SC 29472
Parker's Preserve
Residential
MLS# 24007127 / Active
Popular Davidson Floorplan with 5 bedrooms and 3.5 Baths. This home has the Alternate Kitchen and Dining Room configuration, which includes a Huge ...
Reduced -$20,000
5322 Dorchester Road
North Charleston, SC 29418
Glyn Terrace
Residential
MLS# 24007103 / Active
Motivated Seller!Welcome to 5322 Dorchester Road. This property is being sold ''As Is'' and the seller will not make any repairs. The price is set ...
Reduced -$10,099
616 Southview Lane
Summerville, SC 29486
Nexton
Residential
MLS# 24007100 / Active
Now under construction for Summer Move in!! 3 bedrooms, 2.5 bathrooms, and over 1,550 sq. ft. of living space PLUS a 2 car detached garage all in t...
Increase +$1,150
1723 Live Oak Park
Seabrook Island, SC 29455
Seabrook Island
Residential
MLS# 24007096 / Active
Welcome to your coastal home!! This villa is conveniently located within waking distance to the Equestrian center, Racquet club and the Lake house ...
Reduced -$19,900
2021 Lakeshore Drive
Charleston, SC 29412
Riverland Terrace
Residential
MLS# 24007088 / Active
Welcome to 2021 Lakeshore Drive in Riverland Terrace. Please note: The neighboring home being built will be divided by tall trees, a 5-foot wall an...
82 Mariners Cay Drive
Folly Beach, SC 29439
Mariners Cay
Residential
MLS# 24007082 / Active
82 Mariners Cay is a 1st floor Folly Riverside flat, situated in one of the most private locations in the community. This property has maple floors...
Reduced -$21,000
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 09-19-2024 5:34 PM 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.
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