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
126 Harbor Trace Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
Reduced -$19,100
501 Twin Rivers Drive
Wando, SC 29492
Twin Rivers Towns
Residential
MLS# 23025870 / Active
READY IN MAY!! GROUND FLOOR PRIMARY SUITE!! Located on the corner of a building, the interior boasts an open design offering easy living. The eat-i...
8777 E Fairway Woods Drive
Charleston, SC 29420
Coosaw Creek Country Club
Residential
MLS# 23025829 / Active
BEAUTIFUL NEW CONSTRUCTION HOME on the golf course, with extensive fairway views from the kitchen, family room, and primary bedroom! This is the ON...
Reduced -$10,000
160 1/2 Smith Street
Charleston, SC 29403
Radcliffeborough
Residential
MLS# 23025828 / Active
Magnificent investment opportunity! This 1885 historic home is located in the beautiful Radcliffeborough neighborhood in downtown Charleston. Locat...
Reduced -$41,000
2207 Clubhouse Road
Summerton, SC 29148
Residential
MLS# 23025806 / Active
Don't miss your chance to own this waterfront house on Lake Marion! This home is tucked back in the peaceful Lizzie's Creek. It features a 1 year o...
Reduced -$30,995
1619 Zurlo Way
Johns Island, SC 29455
The Preserve At Fenwick Plantation
Residential
MLS# 23025797 / Active
Welcome to your dream home nestled in a serene cul-de-sac, where luxury meets tranquility. This home is the epitome of inviting--with clean lines f...
Increase +$36,000
220 N Highway 52
Moncks Corner, SC 29461
Residential
MLS# 23025780 / Active
Prime Location! Value is in the land only. There is no information given about the home on this property. This property is currently zoned Resident...
257 Shadybrook Drive
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23025770 / Active
Phase 6 New Release - The STARLING Floor plan. It's the perfect multi-generational solution! Gorgeous Board and Batten Siding in Coastal Sage highl...
70 Grand Pavilion Boulevard
Isle of Palms, SC 29451
Wild Dunes
Residential
MLS# 23025711 / Active
Rare opportunity to be a part of the Wild Dunes Grand Pavilion lifestyle. Ownership in this resort hub area offers unmatched amenities to you & you...
4601 Apple St
North Charleston, SC 29405
Wando Woods
Residential
MLS# 23025707 / Active
Come home to your dream deep-water waterfront retreat on the Ashley River! This captivating elevated home is a rare gem, offering an unparalleled l...
172 Donning Drive
Summerville, SC 29483
The Ponds
Residential
MLS# 23025668 / Active
Welcome to 172 Donning Drive now for sale in the sought-after Ponds Community featuring a Fresh Exterior 2024 Paint Job and a 2022 Architichetural ...
Reduced -$5,000
2260 Woodland Shores Road
Charleston, SC 29412
General Lee
Residential
MLS# 23025661 / Active
Seller's are very motivated and have dropped price to their bottom line. Took off the market due to time of year! Less than 2 miles to the Riverlan...
Reduced -$15,000
127 Pecan Drive
Summerville, SC 29483
Pecan Grove
Residential
MLS# 23025656 / Active
Priced under Apraisal! Coming back to the market No Fault to the seller. Welcome to a refined haven of contemporary luxury! This newly constructed ...
Reduced -$19,965
3193 Hugh Bennett Drive
Johns Island, SC 29455
Sea Island Preserve
Residential
MLS# 23025649 / Active
Quick Move-In Opportunity! Estimated Closing February/March 2024. This one won't last!Welcome to Sea Island Preserve. The only brand new luxury gat...
Reduced -$5,000
81, 81 1/2 Rutledge Avenue
Charleston, SC 29401
Harleston Village
Residential
MLS# 23025640 / Active
Welcome to the Sottile-Glover Mansion, this includes the main house, grounds keeper's building/garage/storage building and courtyard. A horizontal ...
3 Summit Avenue
Goose Creek, SC 29445
Sedgefield
Residential
MLS# 23025639 / Active
Beautiful four bedroom, two bathroom brick ranch located in an established neighborhood with no HOA. This home is in PRISTINE CONDITION and just wa...
Reduced -$4,000
108 Georgiana Drive
Cross, SC 29436
Lake Hill
Residential
MLS# 23025620 / Active
This spacious 1,908 square foot, handicap accessible home sits on a generous 0.96-acre lot, providing ample space for outdoor activities and garden...
Reduced -$5,000
19 Bradley Pasture Way
Ravenel, SC 29470
Poplar Grove
Residential
MLS# 23025592 / Active
Experience luxury living on 5 acres in Charleston's exclusive Poplar Grove community. This brand-new custom home offers a thoughtfully designed flo...
Reduced -$250,000
184 W Smith Street
Summerville, SC 29485
Lincolnville Square
Residential
MLS# 23025527 / Active
Welcome to this lovely property that offers a cozy ambiance with a fireplace, perfect for a warm and on chilly evenings. The interiors boast a natu...
Reduced -$2,000
111 Shelly Street
Bonneau, SC 29431
Residential
MLS# 23025484 / Active
Welcome to this unique property that offers versatility and flexibility to its future owner. Located in a peaceful residential neighborhood, this p...
Reduced -$1,000
1510 Old Rosebud Trail
Awendaw, SC 29429
Pepper Plantation
Residential
MLS# 23025465 / Active
Serene marsh views on the Wando River! This 3 acre, private retreat is located within the gated community of Pepper Plantation. Just a short drive ...
Reduced -$200,000
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 4:30 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.