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Legal Implications of a Charleston, SC Short Sale - Page 8
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.
Displaying results 71-80 of 102
107 Knottingham Dr
Goose Creek, SC 29445
Lovely traditional home set on a wooded lot. enjoy the gracious old trees while sipping coffee on your screened porch. formal living room. separ...
838 Bent Hickory Rd
Charleston, SC 29414
Grand oaks plantation
Gorgeous one owner home with tons of upgrades and kept very clean!! grand two story entrance. formal dining room with chair rail and crown moldi...
7303 Coopers Hawk Dr
Hanahan, SC 29410
Wonderful ranch plan with bonus in tanner plantation. open with lots of natural light this floor plan is flexibility at it's best. formal dining...
411 Tallow Ct
Moncks Corner, SC 29461
Beautiful murray ii floor plan in cypress ridge with 4 bedrooms. features stainless appliances and 9ft+ smooth ceilings. this is a great floor p...
7612 Stargazer Dr
Hanahan, SC 29410
3 bedrooms + frog! if windows and natural daylighting are a preference for you, then the augusta is a natural! twelve-foot ceilings soar through...
5 South Held Cir
Charleston, SC 29412
This home has a fantastic floor plan and many nice features ! big front porch and a large screened back porch also . vaulted ceilings everywhere...
5121 Timicuan Way
Summerville, SC 29485
4 bedrooms plus frog 3 full baths and 1/2 down-master on first floor-house located on cul-de-sac and house backs up to lake-separate dining room...
1713 Waterside Blvd
Moncks Corner, SC 29461-7157
Want a large ranch on an acre on the lake? have i got the home for you.3 bedrooms, 2 full and 2 half baths. large eat in kitchen, family room an...
8622 Woodland Walk
North Charleston, SC 29420-7435
Coosaw creek country club
Cared for potential short sale in gated community. very well appointed. vacant and ready for occupancy. hardwoods in foyer, kitchen, living and ...
3452 Forest Glen Dr
Charleston, SC 29414-7540
looking for a gorgeous home, in a great community, at an excellent price? then this truly beautiful home is a must-see! everything you want in ...
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Buying a home from you was like buying from a family member. You were honest, straight-forward and I could tell you were really looking out for my best interests at every turn. Beth Epstein
Well your low key approach worked. Not only did you sell our house in this challenged market in 23 days, you found us a great new home and the transition was seamless! We are really happy in our new home. Brian and Wendy Rollings
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