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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3395 Miller Drive
Ladson, SC 29456
Ridgewood
Residential

MLS# 17024122 / Active
3 br, 2 ba, 1 half bath, 1720 sqft

Huge Corner lot. Great location with water and sewer. House needs some work and is being Sold AS IS. Central Air Conditioning is not work and on... 

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$185,000
Provided courtesy of Carolina One Real Estate

436 Ashburton Drive
Goose Creek, SC 29445
Devon Forest
Residential

MLS# 17023621 / Active Contingent
3 br, 2 ba, 1 half bath, 2060 sqft

Welcome home to 436 Ashburton Drive located in the desirable Devon Forest! This beautiful 2-story home with FROG is nestled within a cul-de-sac and... 

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$194,918
Provided courtesy of Carolina One Real Estate

530 Barfield Drive
Summerville, SC 29485
Walnut Farms
Residential

MLS# 17023456 / Active
5 br, 3 ba, 3545 sqft

Motivated Seller!!!!! Make an offer QUICK on this Wonderful home in a very desirable neighborhood with large wooded lot. Fantastic 5 bedrooms and 3... 

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$395,000
Reduced -$84,000
Provided courtesy of Miler Properties, Inc.

302 Swamp Fox Lane
Goose Creek, SC 29445
Foxborough
Residential

MLS# 17022569 / Active Contingent
4 br, 2 ba, 1184 sqft

Great opportunity to own a 4 bedroom 2 bath home in Foxborough! 

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$135,000
Provided courtesy of Charleston Homes

2603 Stith Avenue
North Charleston, SC 29405
Waylyn
Residential

MLS# 17022117 / Active
3 br, 1 ba, 1 half bath, 1503 sqft

**Calling All Investors! Income-Producing Short Sale Opportunity!** This is One of the Largest Homes in the Neighborhood.**It Includes Two Outbuild... 

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$84,900
Provided courtesy of Keller Williams Realty Charleston

112 Poplar Street
Moncks Corner, SC 29461
Residential

MLS# 17021854 / Active
4 br, 2 ba, 1966 sqft

SHORT SALE-we have already completed the short sale process and this could close quickly at the asking price. The home needs repairs and updates t... 

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$195,000
Provided courtesy of The Real Estate Firm

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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$165,000
Reduced -$5,000
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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$264,900
Reduced -$5,000
Provided courtesy of Brand Name Real Estate

25 Kenilworth Road
Goose Creek, SC 29445
Willowbrook
Residential

MLS# 17019471 / Active Contingent
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

117 Pine Valley Drive
Summerville, SC 29483
Pine Forest Country Club
Residential

MLS# 17016050 / Active Contingent
5 br, 4 ba, 1 half bath, 3800 sqft

 

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$479,900
Provided courtesy of Horne Realty, LLC

518 Brick Barn Lane
Goose Creek, SC 29445
Brickhope Greens
Residential

MLS# 17015492 / Active
4 br, 3 ba, 2182 sqft

POSSIBLE SHORT SALE! Great home! Awesome floor plan with four bedrooms and 3 full baths. All bedrooms upstairs with a space for an office downstair... 

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$215,000
Reduced -$10,000
Provided courtesy of Carolina One 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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$998,500
Reduced -$151,500
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, PREAPPROVED PRICE! This Classic Charleston single sits on a beautiful tidal creek with a shared dock, providing easy acces... 

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$880,000
Reduced -$70,000
Provided courtesy of Carolina One Real Estate

123 Salt Meadow Lane
Summerville, SC 29483
Blackberry Creek
Residential

MLS# 17012889 / Active Contingent
4 br, 2 ba, 1 half bath, 3530 sqft

Great investment opportunity! You will fall in love with this extremely spacious and open floor plan. Walking into the formal living/dining room wi... 

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$220,000
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

121 Hammerbeck Road
Summerville, SC 29483
Brookwood
Residential

MLS# 17012287 / Active Contingent
3 br, 2 ba, 1145 sqft

Perfect home for the first time home buyer! This is an absolutely adorable home, looks like no one has lived here, very clean...Move right in cond... 

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$154,900
Increase +$14,376
Provided courtesy of Coldwell Banker Residential Brokerage

109 Wheeler Road
Summerville, SC 29486
Sangaree
Residential

MLS# 17012172 / Active Contingent
4 br, 2 ba, 1480 sqft

Excellent Handyman Special & Short Sale Opportunity for a 4BR/2BA Brick Ranch in the Well-Established Subdivision of Sangaree in Summerville! Easy ... 

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$50,000
Provided courtesy of Keller Williams Realty Charleston

52 Creek Bend Drive
Summerville, SC 29485
Bridges Of Summerville
Residential

MLS# 17011903 / Active Contingent
4 br, 2 ba, 1 half bath, 1841 sqft

You can own this beautiful 3 story Charleston single home with 4BR,2.5BA in the heart of Summerville. Stunning double front porches. Hardwood floor... 

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$210,000
Increase +$25,000
Provided courtesy of Brand Name Real Estate
Residential, Land, Other Disclaimer: p>Broker Reciprocity 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 Carolina One Real Estate 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 09-20-2017 6:03pm 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. Copyright 2017 Charleston Trident Multiple Listing Service, Inc. All rights reserved.
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