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.
Modify Search Criteria
4526 Park Lake Drive
Kiawah Island, SC 29455
Kiawah Island
Residential
MLS# 23026583 / Active
This coastal style villa will have you captivated from the moment you step inside. It's cheerful and clean lines are appealing to the most selectiv...
Reduced -$40,000
1375 River Road
Johns Island, SC 29455
Residential
MLS# 23026575 / Active
Discover the epitome of waterfront luxury at this exquisite 2019 custom-built home, nestled in the serene setting of Penny Creek with a shared dock...
Reduced -$5,000
1076 Davis Drive
Summerton, SC 29148
Francis Marion
Residential
MLS# 23026574 / Active
NOW OFFERING OWNER FINANCING AND A $50k INTERIOR PAINTING/MASTER BATH UPGRADE ALLOWANCE! Welcome to your dream home on Lake Marion! This luxurious ...
Reduced -$100,000
1165 Oak Bluff Avenue
Charleston, SC 29492
Oak Bluff
Residential
MLS# 23026568 / Active
Personalize your New Elevated drive-under MARSH FRONT home! The Avondale continues to be a favorite plan! Bright, open and airy, this beautiful hom...
Increase +$4,000
1458 Tangles Trail
Charleston, SC 29492
Oak Bluff
Residential
MLS# 23026567 / Active
Build and design your New Elevated drive-under water view home! The Avondale continues to be a favorite plan! Bright, open and airy, this beautiful...
Reduced -$25,000
19 26th Avenue
Isle of Palms, SC 29451
Residential
MLS# 23026548 / Active
Seize the opportunity to earn this exceptional new residence crafted by Fox Creek Homes construction. Boasting approximately 3,545 SQFT. of pure lu...
140 Leeward
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23026438 / Active
Say Hello to K. Hovnanian's Four Seasons number one seller, the Donegal floor plan! This home packs a punch for a home just under 2000 sq ft. This ...
Reduced -$20,090
141 Leeward Landing
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23026410 / Active
Enjoy premiere Active Adult resort living in our popular Donegal home. If storage is a premium for you, take advantage of the oversized garage, plu...
Reduced -$10,000
921 Miles Jamison Road
Summerville, SC 29485
Greenhurst
Residential
MLS# 23026408 / Active
Welcome Home! This three bedroom home with a converted garage is smack down in the heart of Summerville and Ladson with potential beyond your imagi...
Reduced -$5,000
4215 Ten Shillings Way
Ravenel, SC 29470
Poplar Grove
Residential
MLS# 23026369 / Active
4215 Ten Shillings Way is one of the Top Properties in all of Poplar Grove, located just before the Boathouse in the Preserve Section. This Propert...
Reduced -$150,000
340 Sea Cloud Circle
Edisto Island, SC 29438
Wyndham Ocean Ridge
Residential
MLS# 23026314 / Active
Built in 2011, this well-maintained two bedroom, two full bath is beautifully furnished & has plenty of natural light throughout. ''A Mermaid Loung...
Reduced -$7,000
242 Palace Drive
Cross, SC 29436
Cross Area (west)
Residential
MLS# 23026311 / Active
*Fully Warrantied* Seller Credit Available! This exquisite property strikes a balance between seclusion and accessibility, offering the desired pri...
Reduced -$11,000
112 Palm Boulevard
Isle of Palms, SC 29451
Isle Of Palms
Residential
MLS# 23026301 / Active
Coastal beach living with a deep water dock and saltwater pool! This 3600 sq ft, 5 bedroom/5 full bath home is in excellent condition and has views...
Reduced -$250,000
819 Descartes Street
Summerville, SC 29486
Nexton
Residential
MLS# 23026233 / Active
READY NOW!! In Nexton's newest 55+ community, this three bedroom Palmetto end unit has been designed with our new Artisan design collection. This c...
Reduced -$5,000
100 Rosewood Drive
Walterboro, SC 29488
Hyde Park
Residential
MLS# 23026218 / Active
Welcome to this charming 1966 square foot brick home featuring 3 bedrooms, 2 bathrooms, and hardwood floors throughout. The spacious kitchen openin...
1088 St Thomas Island Drive
Charleston, SC 29492
Residential
MLS# 23026179 / Active
This 4-bedroom, 1.5-bathroom home is situated on 1 acre and presents a rare opportunity for those with a vision for transformation. Located in an i...
Reduced -$15,000
3809 Tim Ascue Lane
Awendaw, SC 29429
Bee Hive Plantation
Residential
MLS# 23026163 / Active
You'll feel right at home in this Charming Bungalow.Very Quiet Location in North Mt Pleasant with no HOA. This home is conveniently located near aw...
2395 Folly Road UNIT 4a
Folly Beach, SC 29439
Turn Of River
Residential
MLS# 23026143 / Active
Enjoy sunrise views of Morris Island Lighthouse from your front porch. End your day with sunset views from your screened porch at the rear. The res...
Increase +$75,000
7787 Seafield Road
Meggett, SC 29449
Roxbury
Residential
MLS# 23026090 / Active
Discover the Grandeur of 7787 Seafield Rd- A Dual-Home Estate on Over 28 Acres!Nestled in the scenic Meggett area, this expansive property offers a...
5212 New Palm Court
Summerville, SC 29485
Wescott Plantation
Residential
MLS# 23025946 / Active
Welcome home! Beautifully situated on a golf course, this Kiawah floor plan offers three levels of thoughtfully designed spaces made for gathering ...
Increase +$10,000
7682 Kings Grant Lane
North Charleston, SC 29420
Pepperhill
Residential
MLS# 23025918 / Active
PRICE HAS BEEN HEAVILY REDUCED. Welcome to your new home. Move in ready with the owners having completely renovated and updated/upgraded the entire...
Reduced -$4,500
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 05-11-2024 5:05 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.
Copyright 2024 Charleston Trident Multiple Listing Service, Inc. All rights reserved.