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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2976 Lodge Berry Lane
Johns Island, SC 29455
Vineyard Lakes
Residential
MLS# 24006341 / Active
CONSTRUCTION IS MOVING FAST in Vineyard Lakes on Johns Island. Lot #12 features the WAILER floorplan. The lot has its own private point going out i...
Increase +$26,462
6417 Highway UNIT #162
Hollywood, SC 29449
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Residential
MLS# 24006277 / Active
Double Lot! Welcome to your own piece of paradise in Hollywood! Build your dream home while you live in this charming 2 bedroom, 1 bath house sitti...
Reduced -$5,000
253 Sea Cloud Circle
Edisto Island, SC 29438
Wyndham Ocean Ridge
Residential
MLS# 24006247 / Active
Welcome to idyllic island living at Driftwood Villas in Edisto Beach! This gated golf course community boasts ocean breezes and laid back living. T...
Reduced -$4,100
40 Bee Street UNIT #409
Charleston, SC 29403
University Place
Residential
MLS# 24006245 / Active
This top-floor downtown condo has seen some wonderful renovations and rental history! Located across the street from MUSC, it is perfect for anyone...
411 Rowley Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 24006198 / Active
Proposed construction! The beautiful Chadwick is the perfect single-story home. It offers 3 beds/2 full baths and is nestled on the most gorgeous p...
313 Willows Crescent Drive
Moncks Corner, SC 29461
Lakeview at Kitfield
Residential
MLS# 24006172 / Active
READY THIS SUMMER! Welcome to the Elston plan, offering a 2-story floor plan with 4 bedrooms and 2 1/2 baths, situated on a private wooded lot offe...
Reduced -$5,000
286 Shadybrook Drive
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 24006120 / Active
Beautiful tree lined pond views from your screened in lanai in this four bedroom two and a half bath Rosella Floorplan.This home has a large enetrt...
Reduced -$5,075
40 41st Avenue UNIT D15
Isle of Palms, SC 29451
Wild Dunes
Residential
MLS# 24006106 / Active
50' slip with 5' overhang in Wild Dunes Yacht Harbor. Easy access to the ICW, ocean, as well as walk to restaurants, or the beach. The best spot fo...
Reduced -$14,100
4064 O'Hear Avenue UNIT #2
North Charleston, SC 29405
Cooper River Townes
Residential
MLS# 24006103 / Active
The Fenwick is a drive under 2 car tandem garage townhome located in Cooper River Townes. Loaded with upgraded features included such as LVP throug...
Increase +$9,878
9 Meeting Street UNIT E
Charleston, SC 29401
South Of Broad
Residential
MLS# 24006102 / Active
This charming brick carriage house at 9 Meeting Street offers a rare opportunity to own an historic property South of Broad. This early 1700's home...
Reduced -$51,000
4062 O'Hear Avenue UNIT #1
North Charleston, SC 29405
Cooper River Townes
Residential
MLS# 24006100 / Active
Cooper River Townes is an exciting new townhome community just minutes from Park Circle and Riverfront Park! This end unit Fenwick is a drive under...
Reduced -$14,910
710 S Main Street
Summerville, SC 29483
Residential
MLS# 24006005 / Active
Welcome to the historic charm of downtown Summerville, where the timeless elegance of Flowertown Bed and Breakfast awaits you. Originally built in ...
Reduced -$54,000
3570 Shipwatch Road
Kiawah Island, SC 29455
Seascape Villas
Residential
MLS# 24005938 / Active
Own your own little piece of paradise on Kiawah Island. This charming one bedroom condo is located in West Beach. Close to the Conference Center an...
Reduced -$8,000
757 Backfield Road
Walterboro, SC 29488
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Residential
MLS# 24005917 / Active
Welcome to your own private oasis in the heart of the ACE Basin on Horseshoe Creek in Walterboro, SC. This stunning 2755 sf home sits on over 1 acr...
Reduced -$23,000
1006 Retreat Avenue
Moncks Corner, SC 29461
Barons Retreat
Residential
MLS# 24005914 / Active
Step into luxurious living with this meticulously upgraded home boasting exquisite crown molding and wainscoting, setting a sophisticated tone thro...
Reduced -$26,000
81 Avondale Avenue
Charleston, SC 29407
Avondale
Residential
MLS# 24005865 / Active
AVONDALE! Beautiful home in highly sought after Avondale. Detached garage with an ADU with full kitchen/bath has potential for solid short or long ...
Reduced -$20,000
665 Silver Spruce Street
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 24005823 / Active
Welcome to this charming single-story home, located in a beautiful neighborhood with easy access to all amenities. As you enter this better-than-ne...
Reduced -$4,900
63 Krier Lane
Mount Pleasant, SC 29464
Ion
Residential
MLS# 24005801 / Active
This custom-built I'On home overlooks the canal and offers views of stunning Eastlake. This like-new home will impress from the moment you step thr...
Reduced -$155,000
129 Lyra Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 24005782 / Active
REDUCED!!Cane Bay Neighborhood! The open living, dining and kitchen area makes this home live large. The large center island complete with seating ...
Reduced -$10,100
24 Transom Court
Charleston, SC 29407
Ripley Cove
Residential
MLS# 24005773 / Active
This stunning townhome at Ripley Light Marina invites you to spend your days by the water, offering an exclusive 40' boat slip just steps away on t...
7600 Palmetto Drive UNIT B310
Isle of Palms, SC 29451
Shipwatch Villa
Residential
MLS# 24005757 / Active
Experience coastal living at its finest in the prestigious and private Wild Dunes community! This turn key two-bedroom, two-bathroom third floor Sh...
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 12:30 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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