Legal Implications of a Short Sale

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.

 

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188 Carolinian Drive
Summerville, SC 29485
Legend Oaks Plantation
Residential

MLS# 17020919 / Active
4 br, 3 ba, 1 half bath, 2674 sqft

This is a wonderful home with a couple of extra rooms to use for your creative or functional desires: i.e., exercise, office, design work space, et... 

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$400,000
Provided courtesy of Luxury Simplified - The Montez Team

450 Doane Way
Charleston, SC 29492
Beresford Commons
Residential

MLS# 17020666 / Active
3 br, 2 ba, 1 half bath, 1314 sqft

Spectacular 3 bedroom town home, end unit on the pond! Spacious town home and a large screened porch over looking the pond make this a great choice... 

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$170,000
Provided courtesy of Charleston Homes

452 Brick Kiln Drive
Summerville, SC 29483
Branch Creek
Residential

MLS# 17020037 / Active
4 br, 2 ba, 1 half bath, 2368 sqft

Welcome to this newly built 4 bedroom, 2.5 bath well appointed home on a quiet street backing up to a wooded lot. A two car attached garage welcom... 

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$274,900
Provided courtesy of Brand Name Real Estate

25 Kenilworth Road
Goose Creek, SC 29445
Willowbrook
Residential

MLS# 17019471 / Active
3 br, 2 ba, 1750 sqft

This one is full of potential. Spacious well laid out home in Goose Creek that is ready for your touch. Home features a large family room just of... 

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$110,000
Provided courtesy of Exit Realty Lowcountry Group

104 Stratford Drive
Summerville, SC 29485
Kings Grant
Residential

MLS# 17018806 / Active
4 br, 3 ba, 2745 sqft

THIS BRICK COLONIAL IN KINGS GRANT IS GREAT FOR A LARGE FAMILY LOOKING FOR SPACE.OPEN BRIGHT FLOORPLAN WITH HARDWOOD FLOORS AND CERAMIC TILE HAS A ... 

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$259,900
Provided courtesy of Harbins Two, Inc

206 Oxford Way
Summerville, SC 29486
Sangaree
Residential

MLS# 17018584 / Active
3 br, 2 ba, 1056 sqft

This charming ranch home is nestled on a quiet cul-de-sac in an established community. It would make a great starter home or investment property! T... 

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$130,000
Provided courtesy of Jeff Cook Real Estate, LLC

8871 E Fairway Woods Drive
North Charleston, SC 29420
Coosaw Creek Country Club
Residential

MLS# 17018307 / Active
5 br, 3 ba, 1 half bath, 4174 sqft

This incredible home sits on over 1/3 acre beautifully landscaped lot with a ''low maintenance'' in ground pool along with fabulous views of the 12... 

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$590,000
Provided courtesy of Brand Name Real Estate

2390 Seabrook Island Road
Johns Island, SC 29455
Seabrook Island
Residential

MLS# 17015137 / Active
3 br, 2 ba, 1 half bath, 4629 sqft

 

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$1,150,000
Reduced -$245,000
Provided courtesy of Harbins Two, Inc

1945 N Creek Drive
Mount Pleasant, SC 29466
Rivertowne Country Club
Residential

MLS# 17014372 / Active
4 br, 3 ba, 3340 sqft

SHORT SALE OPPORTUNITY! This Classic Charleston single sits on a beautiful tidal creek with a shared dock, providing easy access to the Wando Rive... 

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$950,000
Reduced -$40,000
Provided courtesy of Carolina One Real Estate

110 Conquerors Lane
Moncks Corner, SC 29461
Highways 17-a / Old 52 / New 52
Residential

MLS# 17012643 / Active
4 br, 2 ba, 1432 sqft

Come see this this unique home. This home has several possibilities. Would be great for a first time home buyer, retirement home buyer, investor. I... 

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$178,000
Provided courtesy of AgentOwned Premiere Group

1851 Woodland Road
Charleston, SC 29414
Pier Point
Residential

MLS# 17012449 / Active
2 br, 1 ba, 1041 sqft

Great first home, 2 bedroom and 1 bath located in West Ashley. Inside is recently renovated top to bottom with new hardwood floors, cabinets, appli... 

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$299,000
Provided courtesy of Sadler Group of Charleston LLC

1138 Quick Rabbit Loop
Charleston, SC 29414
Hunt Club
Residential

MLS# 17011787 / Active
4 br, 3 ba, 1 half bath, 3060 sqft

Short Sale Opportunity in the Well-Established & Popular Neighborhood of Hunt Club in West Ashley! ** Enter this Large 4BR/3.5BA Home from the Invi... 

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$334,500
Reduced -$5,400
Provided courtesy of Keller Williams Realty Charleston

757 Lookout Point
Mount Pleasant, SC 29464
Coopers Pointe
Residential

MLS# 17011145 / Active
3 br, 2 ba, 1972 sqft

** Handyman Special ** Short Sale w/ too Many Liens to List, Buyer will have to hire an Attorney Upfront at Costs of $5000 or more to try and clear... 

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$325,000
Provided courtesy of REMAX Advanced Realty

8483 Yadkin Circle
North Charleston, SC 29406
The Lakes At Northwoods
Residential

MLS# 17007404 / Active
2 br, 1 ba, 1 half bath, 1096 sqft

Great location and price on this potential short sale. Close and convenient to I-26. Unit backs up to the pond with a deck off of the living room. ... 

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$55,000
Provided courtesy of ChuckTown Homes, LLC

3643 Hilton Drive
Johns Island, SC 29455
Westland
Residential

MLS# 17006259 / Active
3 br, 2 ba, 1711 sqft

HANDYMAN SPECIAL! Roomy ranch in desirable subdivision*Hrdwd flrs,200amp box,almost-new ROOF,f'place in one of two dens & wood-stove in other,well-... 

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$285,900
Provided courtesy of Owen G Meislin Real Estate

48 Burroughs Hall
Kiawah Island, SC 29455
Kiawah Island
Residential

MLS# 17003410 / Active
3 br, 3 ba, 1 half bath, 2123 sqft

Short Sale. Bring All Offers!! An excellent value in Kiawah Island, on a quiet cup-de-sac in the much sought area behind the Second Gate. Make th... 

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$649,000
Reduced -$146,000
Provided courtesy of Golden Bear Realty

335 Estates Drive
Walterboro, SC 29488
Sweetbriar I
Residential

MLS# 17003268 / Active
3 br, 2 ba, 1 half bath, 2200 sqft

APPRAISED FOR $156k IN JULY 2017! Let's make a deal!Welcome home to this gorgeous 3 bedroom 2.5 bath home located in the quaint neighborhood of Swe... 

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$147,500
Provided courtesy of Oswald-Cole & Associates Inc.

106 Ayers Circle
Summerville, SC 29485
Salisbury Acres
Residential

MLS# 17002199 / Active
6 br, 4 ba, 4082 sqft

Rare find in Summerville. This home was completely remodeled in 2011 to include new electrical and plumbing.This is no cookie cutter home! The ext... 

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$365,000
Provided courtesy of AgentOwned Premiere Group

127 Meadowvale Lane
Moncks Corner, SC 29461
Spring Grove Place
Residential

MLS# 16031581 / Active
3 br, 2 ba, 1 half bath, 1694 sqft

SHORT SALE SUPER BARGAIN! You have found a great 3 br. 2 1/2 ba. perfect family-friendly subdivision. This house has everything a family would wan... 

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$159,900
Reduced -$10,000
Provided courtesy of The Boulevard Company, LLC

5804 Palmetto Drive
Isle Of Palms, SC 29451
Wild Dunes
Residential

MLS# 16012207 / Active
2 br, 2 ba, 1231 sqft

ALL OFFERS WOULD BE CONSIDERED!!!FURNISHED END UNIT WITH GREAT RENTAL HISTORY. THERE IS A WRAP AROUND PRIVATE BALCONY THAT HAS VIEWS OF THE POND A... 

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$570,000
Provided courtesy of Carroll Realty
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