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
5625 Crystal Harbor Lane
Hollywood, SC 29449
Crystal Harbor
Residential
MLS# 23020860 / Active
STUNNING DEEPWATER HOME ON THE STONO RIVER WITH PRIVATE DOCK! This beautiful elevated home is located on a 1-Acre homesite in the quiet subdivision...
Reduced -$525,000
1802 Twin Rivers Drive
Wando, SC 29492
Twin Rivers Towns
Residential
MLS# 23020833 / Active
READY FOR MAY CLOSING! This townhome boasts an open interior design offering easy living. The eat-in kitchen has granite topped counters, 42'' uppe...
3701 Dock Site Road UNIT #108
Edisto Beach, SC 29438
Bay Creek Villas
Residential
MLS# 23020807 / Active
This Bay Creek Villa gives you the opportunity to own a redesigned Villa offering a larger living space than other Villas. It provides ample room f...
492 Sea Cloud Circle
Edisto Island, SC 29438
Wyndham Ocean Ridge
Residential
MLS# 23020746 / Active
Multi-bedroom cottage is an enticing villa home, in a gated community. In this quaint villa you will find a cohesive and well thought out kitchen a...
Increase +$10,000
11 Wappoo Trace Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23020727 / Active
Come build NEW Mason W/BONUS Plan! This one story 3-6BR, 3-3.5BA W/ 3 CAR GARAGE!!!! Standard features include: Laminate Wood Flooring in main livi...
10 Wappoo Trace Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23020725 / Active
Come build NEW Mason Plan! This one story 3-4BR, 3BA W/ 3 CAR GARAGE!!!! Standard features include: Laminate Wood Flooring in main living areas, Wo...
15 Wappoo Trace Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23020720 / Active
Come build the Crestwood! This 4-5BR 3.5-4.5BA W/ GUEST SUITE DOWN has it ALL! Standard features include: Laminate Wood Flooring in main living are...
Increase +$5,000
2675 Crystal Spring Road
Johns Island, SC 29455
Twin Lakes
Residential
MLS# 23020686 / Active
Tucked away in the heart of Johns Island is a private enclave of Lowcountry style homes at Twin Lake. Nestled amongst the live oaks, this community...
Increase +$75,000
2531 Crystal Spring Road
Johns Island, SC 29455
Twin Lakes
Residential
MLS# 23020666 / Active
Tucked away in the heart of Johns Island is a private enclave of Lowcountry style homes at Twin Lake. Nestled amongst the live oaks, this community...
Increase +$75,000
609 King Street UNIT #440
Charleston, SC 29403
City Of Charleston
Residential
MLS# 23020652 / Active
Coming in 2026! The Peninsula of Charleston is an ownership-model, Continuing Care Retirement Community (CCRC) on King Street in historic downtown ...
2141 Blue Bayou Boulevard
Johns Island, SC 29455
Twin Lakes
Residential
MLS# 23020649 / Active
Welcome to Homesite 33 and the Virginia floor plan, where spacious living meets modern convenience. This home boasts an expansive foyer, a versatil...
Increase +$108,893
2109 Tides End Road
Charleston, SC 29412
The Preserve At The Clam Farm
Residential
MLS# 23020547 / Active
Stunning deep water & tidal creek views make this luxury townhome a dream. Enjoy orange & red sunrises in the morning, & sunsets that transform the...
Reduced -$20,000
1126 Harvey Street
Holly Hill, SC 29059
Residential
MLS# 23020540 / Active
With your creativity for design & floor plan you could have a large & lovely home. Foyer overlooks a sunken formal living room w/fireplace & formal...
Reduced -$50,000
823 Hamlet Circle
Goose Creek, SC 29445
Crowfield Plantation
Residential
MLS# 23020518 / Active
One Acre Luxury Estate Featuring a Stately, All-Brick home and a 6 car garage with separate 2 bedroom apartment! This grand property is secluded of...
Reduced -$24,983
273 Mallard Road
Summerville, SC 29483
Residential
MLS# 23020513 / Active
Move in ready home. Over 2600sqft home in 1.4 acres lot. Freshly painted, LVP entire flooring and all new fixtures. Can be rezoned for commercial p...
400 Bellerive Lane
Summerville, SC 29483
Pine Forest Country Club
Residential
MLS# 23020377 / Active
Spectacular custom-built, one story Brick home with split bedroom floor plan situated on a gorgeous lot overlooking the lush fairways and ponds of ...
Reduced -$20,900
503 Twin Rivers Drive
Wando, SC 29492
Twin Rivers Towns
Residential
MLS# 23020347 / Active
THIS BRAND NEW TOWNHOME WITH A GROUND FLOOR PRIMARY SUITE IS READY IN MAY! A thoughtful interior layout boasts an open design offering easy living!...
1523 W Robinhood Drive
Charleston, SC 29407
Sherwood Forest
Residential
MLS# 23020319 / Active
Tasteful Renovation in Avondale schools. Minutes to downtown Charleston, Beaches, restaurants, schools and shopping. Near Avondale area across from...
Reduced -$2,560
2327 Crystal Spring Road
Johns Island, SC 29455
Twin Lakes
Residential
MLS# 23020287 / Active
PROPOSED CONSTRUCTION...McCall- A primary down plan with a spacious living room and large kitchen and dining area. Laundry room is conveniently loc...
Increase +$75,000
2274 Crystal Spring Road
Johns Island, SC 29455
Twin Lakes
Residential
MLS# 23020284 / Active
PROPOSED CONSTRUCTION. Looking for a charming Charleston-style home that's perfect for modern living? Look no further than the Murray plan! This st...
Increase +$75,000
1226 Pine Siskin Court
Kiawah Island, SC 29455
Kiawah Island
Residential
MLS# 23020268 / Active
BOnce in a generation a cottage like this comes on the market. Perhaps the best scenic lagoon view on Kiawah Island with almost 240 degree view. Se...
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 04-27-2024 11:55 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.