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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5752 Pilgrim Avenue
Hanahan, SC 29410
Charleston Farms
Residential
MLS# 24005245 / Active
5/13 update. Home will begin foundation by first of June and estimated completion is September of 2024. Introducing a stunning new construction opp...
Reduced -$100
5754 Pilgrim Avenue
Hanahan, SC 29410
Charleston Farms
Residential
MLS# 24005243 / Active
Introducing a stunning new construction opportunity at 5854 Pilgrim Avenue in the heart of Hanahan, SC. This exquisite home, currently under constr...
Reduced -$100
5756 Pilgrim Avenue
Hanahan, SC 29410
Charleston Farms
Residential
MLS# 24005241 / Active
Homes expected to be ready 8/1 to 8/8. Photos are examples of completed unit. 5/11 Update. Home has completed vinyl siding, rough in inspections. I...
Reduced -$5,400
5758 Pilgrim Avenue
Hanahan, SC 29410
Charleston Farms
Residential
MLS# 24005238 / Active
Home is completed. Home has completed siding, roof and all framing. Rough in inspections have passed and estimated completion is July of 2024. Intr...
Reduced -$5,000
4 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005235 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
8375 Shell House Road
Edisto Island, SC 29438
Edisto Island
Residential
MLS# 24005229 / Active
Do not miss this wonderful home on peaceful Edisto Island. This well maintained home sits on 1-acre and is less than 4-miles to Edisto Beach. The p...
1536 John Fenwick Lane
Johns Island, SC 29455
The Preserve At Fenwick Plantation
Residential
MLS# 24005220 / Active
This corner lot boasting creek, pond and marsh views is ready to be yours! Do not miss out on this professionally curated home inspired by Serena a...
3 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005144 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
1 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24005137 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
14 Lockwood Drive UNIT 6d
Charleston, SC 29401
Ashley House
Residential
MLS# 24005023 / Active
Beautiful Completed RENOVATED Condo With Dead-on VIEWS OF THE ASHLEY RIVER AND Marina. A GREAT FLOOR PLAN FOR SHARING AS EACH BEDROOM HAS IT'S OWN ...
Reduced -$14,000
252 Pelican Flight Drive
Dewees Island, SC 29451
Dewees Island
Residential
MLS# 24005012 / Active
Indulge in an unparalleled private island experience and delight in the splendor of this remarkable island estate, embraced by expansive marshlands...
Reduced -$25,000
8 Larnes Street
Charleston, SC 29403
Westside
Residential
MLS# 24004993 / Active
Welcome to 8 Larnes Street in Charleston, South Carolina - the perfect blend of modern luxury and classic Lowcountry charm. Offering a 3 bedroom, t...
Reduced -$25,000
7 33rd Avenue
Isle of Palms, SC 29451
Isle Of Palms
Residential
MLS# 24004901 / Active
Coastal rental properties are more lucrative than ever, and 7 33rd Avenue presents an exceptional opportunity to reap high-yield returns in the sou...
Reduced -$55,000
2 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24004829 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
6 Cantona Drive
Summerville, SC 29483
Sweetgrass Station
Residential
MLS# 24004826 / Active
CURRENT INCENTIVES: $20,000 off $30,000 in options! Also, receive $10,000 in closing cost assistance! See sales consultant for details. *Incentives...
123 Dorchester Avenue
Summerville, SC 29483
Gadsden Manor
Residential
MLS# 24004822 / Active
Nestled in the heart of Summerville Historic District, South Carolina, this captivating home offers a rare opportunity to own a piece of the town's...
Reduced -$50,000
121 Winding Grove Lane
Moncks Corner, SC 29461
The Groves of Berkeley
Residential
MLS# 24004695 / Active
Under construction! The Juniper plan is a single-story home with vaulted ceilings and ample windows in the great room, allowing for plenty of natur...
Reduced -$5,000
2812 Old Drake Drive
Seabrook Island, SC 29455
Seabrook Island
Residential
MLS# 24004669 / Active
Beautiful custom built home located on Mallard Lake with four bedrooms, four and half bathrooms and a well-designed floor plan of over 4,000 sq ft....
Reduced -$101,000
421 Rowley Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 24004647 / Active
READY AUG.! Welcome home to this amazing and very popular Webster. This home offers 5 B/R, 4.5 BA and HUGE bonus room. This home also has a gourmet...
Reduced -$30,000
415 Cedarview Road
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 24004614 / Active
ALERT! VA Assumable Mortgage at 4.375%. Reap benefits of solar panels on the back of the house!Welcome to your new home. This Aria floor plan featu...
Reduced -$1,000
4255 Faber Drive UNIT #4201
North Charleston, SC 29405
Reverie On The Ashley
Residential
MLS# 24004598 / Active
BOAT SLIP INCLUDED! Experience the pinnacle of luxurious living in this breathtaking 3-bedroom home boasting its own boat slip, designer upgrades, ...
Reduced -$17,500
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 9:28 PM EST .
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