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
2133 Laurel Hill Road
Edisto Island, SC 29438
Residential
MLS# 23014947 / Active
Approximately 130' deep water frontage on Bailey Creek. Spectacular sunsets at 2133 Laurel Hill Road on Edisto Island. 1.2 ACRES with weekender cot...
Reduced -$100
514 Trotters Lane UNIT #138
Moncks Corner, SC 29461
Boykins Run
Residential
MLS# 23014880 / Active
egret Standard layout has an open concept kitchen with island open to breakfast area and family room. Owner's suite with sitting area, generous wal...
Increase +$2,000
206 Brightside Trail
Summerville, SC 29486
Nexton
Residential
MLS# 23014747 / Active
Ready for Move in Now. Living on the Brightside. Single Story Home with Open Concept Living Space. The family is nice and bright with a 9' Slider W...
Reduced -$24,000
148 Albacore Road
Bonneau, SC 29431
Bonneau Estates
Residential
MLS# 23014685 / Active
3 Bedroom and 2 Bath home waiting for that special someone to do the necessary repairs or updates to make it your own! With some TLC, this could be...
1333 Pelican Watch Villas
Seabrook Island, SC 29455
Seabrook Island
Residential
MLS# 23014675 / Active
This price improvement gives you the perfect opportunity to make this your new beach getaway. Picture yourself lounging on your private covered dec...
Reduced -$44,445
298 Summerset Lane
Summerville, SC 29483
Summerset Acres
Residential
MLS# 23014639 / Active
This home sits on a 1.7 Acre lot and can have another home built on the same lot (Accessory Dwelling Unit). This home has been expanded and upgrade...
Increase +$61,000
2342 Parsonage Road
Charleston, SC 29414
Pierpont
Residential
MLS# 23014619 / Active
*Ask about the possibility of receiving 1% reduction in interest rate and free refi.* This 2.9-acre property along the Ashley River is a stunning o...
Reduced -$495,000
2290 N Palmetto Fort Drive
Mount Pleasant, SC 29466
Palmetto Fort
Residential
MLS# 23013966 / Active
Extraordinary, one-of-a-kind, 5-acre farm in the middle of Mt Pleasant! This beautifully designed, custom-built horse farm is adjacent to Oyster Po...
Reduced -$200,000
2833 Rowley Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23013844 / Active
PROPOSED CONSTRUCTION! This gorgeous new Saluda floor plan features a 3 car garage. Options include a first floor guest suite, 4-6 bedrooms, loft, ...
Reduced -$1,000
7 Fairway Dunes Lane
Isle of Palms, SC 29451
Wild Dunes
Residential
MLS# 23013800 / Active
Looking for a place at the beach for 4 weeks of the year. Here is a perfect place. The condo is located at Wild Dunes on the Isle of Palms. The Con...
1715 Middle Street
Sullivans Island, SC 29482
Sullivans Island
Residential
MLS# 23013412 / Active
Build your dream home, Ocean, Beach, Bay, and History! Extraordinary opportunity to live on coveted Sullivan's Island in Charleston South Carolina....
Reduced -$100,000
1081 Saint Thomas Island Drive
Charleston, SC 29492
Residential
MLS# 23013394 / Active
What a unique opportunity to live and have all of the conveniences of Daniel Island without all the HOA restrictions and room to spread out on over...
Reduced -$50,000
2038 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
MLS# 23013253 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
Increase +$57,993
2042 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
MLS# 23013252 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
Increase +$60,639
2046 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
MLS# 23013251 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
Increase +$50,309
2049 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
MLS# 23013249 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
Increase +$56,757
2045 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
MLS# 23013248 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
Increase +$2,493
2037 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
MLS# 23013246 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
Increase +$57,441
204 Saunter Court UNIT Lot 29
Johns Island, SC 29455
Hayes Park
Residential
MLS# 23013235 / Active
*NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK Johns Island's only pedestrian-scaled community that elevates your lifes...
Increase +$26,000
200 Saunter Court UNIT Lot 30
Johns Island, SC 29455
Hayes Park
Residential
MLS# 23013233 / Active
*NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK Johns Island's only pedestrian-scaled community that elevates your lifes...
Increase +$35,000
3886 Watson View Drive
Awendaw, SC 29429
Watson View
Residential
MLS# 23013212 / Active
Embrace the timeless elegance of Lowcountry living, Watson View features classic architecture seamlessly blending with modern convenience. Welcome ...
Increase +$5,000
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 11:00 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.