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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635 Faulkner Drive
Mount Pleasant, SC 29466
Alston Point
Residential
MLS# 23019435 / Active
Build your marshfront dream home on over an acre of Mount Pleasant land! This exquisite 2-acre homesite boasts an impressive 170 feet of coastline ...
214 Stark Drive
Walterboro, SC 29488
Woodland Terrace
Residential
MLS# 23019382 / Active
BACK ON THE MARKET!! TURN KEY CONDITION! Open Concept, Modern, Simplistic Style, Inspiring You to Customize & Design this Undefined Sprawling Space...
639 Faulkner Drive
Mount Pleasant, SC 29466
Alston Point
Residential
MLS# 23019381 / Active
Seize the opportunity to build your dream home on this captivating 2+ acre homesite, boasting an impressive 175 feet of coastline along the picture...
615 Faulkner Drive
Mount Pleasant, SC 29466
Alston Point
Residential
MLS# 23019370 / Active
Seize the opportunity to build your dream home on this captivating 2+ acre homesite, boasting an impressive 175 feet of coastline along the picture...
1091 Capersview Court
Awendaw, SC 29429
The Overlook at Copahee Sound
Residential
MLS# 23019329 / Active
September INCENTIVE: $10,000 IN CLOSING COST ASSISTANCE WITH THE USE OF SELLER'S PREFERRED LENDER/ATTORNEY. Find your slice of paradise at our Newe...
Increase +$47,918
264 Walters Road
Holly Hill, SC 29059
Evergreen
Residential
MLS# 23018672 / Active
Move In Ready! Welcome to Holly Hill, SC, with and abundance of historic and culturally significant places, as well as home to DR Horton's beautifu...
260 Walters Road
Holly Hill, SC 29059
Evergreen
Residential
MLS# 23018671 / Active
Move In Ready! Welcome to Holly Hill, SC, with and abundance of historic and culturally significant places, as well as home to some of DR Horton's ...
106 Broad River Drive
Santee, SC 29142
Santee Cooper Resort
Residential
PROPOSED CONSTRUCTION on DEEP WATER. ** Vacant Land/Lot also listed as MLS# 23018200.** Santee Cooper Resort affords a lifestyle enviable by most, ...
Reduced -$73,000
1069 Capersview Court
Awendaw, SC 29429
The Overlook at Copahee Sound
Residential
MLS# 23018077 / Active
September INCENTIVE: $10,000 IN CLOSING COST ASSISTANCE WITH THE USE OF SELLER'S PREFERRED LENDER/ATTORNEY. Find your slice of paradise at our Newe...
Increase +$88,311
129 Camelot Drive
Goose Creek, SC 29445
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Residential
MLS# 23017922 / Active
Welcome home to 129 Camelot Drive! This charming 3 bedroom/1.5 bath ranch home has updates including:NuCore luxury vinyl plank flooring in cashmere...
Reduced -$10,000
115 Noisette
Summerville, SC 29483
Noisette Row
Residential
MLS# 23017005 / Active
AT&T Fiber is now available in the neighborhood! Welcome to The Eisenhower floor plan, a stunning new home that seamlessly combines modern design w...
Reduced -$4,900
4810 Green Dolphin Way
Kiawah Island, SC 29455
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Residential
MLS# 23016795 / Active
This desirable 2 bedroom, 2 bath Turtle Cove Villa features captivating lagoon views. Turtle Cove Villas are just a short walk or bike ride to the ...
Reduced -$25,100
1248 Creek Watch Trace
Seabrook Island, SC 29455
Creek Watch Villas
Residential
MLS# 23016716 / Active
Welcome home to 1248 Creekwatch Villas with unobstructed tidal marsh views, The floor plan and location make this a great investment or permanent l...
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130 Peninsula Drive
Ravenel, SC 29470
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Residential
MLS# 23016031 / Active
Exceptional Opportunity - Experience the epitome of modern luxury with this unique dual master home featuring a guest carriage house. This stunning...
Increase +$200,000
148 Albacore Road
Bonneau, SC 29431
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Residential
MLS# 23014685 / Active
3 Bedroom and 2 Bath home waiting for that special someone to do the necessary repairs or updates to make it your own! With some TLC, this could be...
298 Summerset Lane
Summerville, SC 29483
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Residential
MLS# 23014639 / Active
This home sits on a 2.1 Acre lot and can have another home built on the same lot (Accessory Dwelling Unit). This home has been expanded and upgrade...
Increase +$61,000
2342 Parsonage Road
Charleston, SC 29414
Pierpont
Residential
MLS# 23014619 / Active
*Ask about the possibility of receiving 1% reduction in interest rate and free refi.* This 2.9-acre property along the Ashley River is a stunning o...
Reduced -$210,000
7 Fairway Dunes Lane
Isle of Palms, SC 29451
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Residential
MLS# 23013800 / Active
Looking for a place at the beach for 4 weeks of the year. Here is a perfect place. The condo is located at Wild Dunes on the Isle of Palms. The Con...
1715 Middle Street
Sullivans Island, SC 29482
Sullivans Island
Residential
MLS# 23013412 / Active
Ocean, Beach, Bay, and History! Build your Dream Home! The existing residence is a 4 bed 2 bath well maintained home but may be replaced with a new...
Reduced -$100,000
2038 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
MLS# 23013253 / Active
September INCENTIVE: $10,000 IN CLOSING COST ASSISTANCE WITH THE USE OF SELLER'S PREFERRED LENDER/ATTORNEY. Indulge in the coastal Carolina lifesty...
Reduced -$19,893
2046 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
MLS# 23013251 / Active
September INCENTIVE: $10,000 IN CLOSING COST ASSISTANCE WITH THE USE OF SELLER'S PREFERRED LENDER/ATTORNEY. Indulge in the coastal Carolina lifesty...
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 5:08 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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