One of the biggest questions I get from out of town buyers coming into Charleston have nothing to do with the actual house themselves, nor the ne...
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 51-58 of 58
3605 Yacht Club Road
Edisto Island, SC 29438
This traditional edisto townhouse style duplex was redecorated and refurbished in the winter of 2014. enjoy being right across the street from the ...
509 Willow Branch Way
Mount Pleasant, SC 29464
Hobcaw creek plantation
This is a great opportunity to buy in hobcaw creek plantation. this two story home is located off a tidal creek where you have access to kayaking a...
1616 River Road
Johns Island, SC 29455
Great property! convenient location. just minutes off river and maybank open bright home w screen porch overlooking acreage & pond. rooms large. ...
4974 Green Dolphin Way
Kiawah Island, SC 29455
Approved short sale! 3 bedroom, 3 bath partly furnished villa with enclosed sunroom spacious deck overlooking golf course white kitchen has upgrad...
90 Ashley Avenue
Charleston, SC 29401
This historic charleston home was built in 1838. the front of this home was rebuilt in 1886, making this one of the more unique blends of architect...
73 Woodford Street
Charleston, SC 29492
You will love this backyard oasis! lushly landscaped tropical setting with an in-ground peppletec swimming pool, water fountain, jacuzzi, slate sto...
224 King George Street
Charleston, SC 29492
Daniel island park
-located in daniel island park on a peaceful tree-lined street sits this beautiful home offering an interior with exquisite designer appointments, ...
90 Ashley Avenue
Charleston, SC 29401
This historic charleston home was built in 1838 and sits on nearly 1/3 acres of meticulously manicured gardens and grounds. the front was rebuilt i...
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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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We sincerely believe Nat's competence, hard work, attention to detail, and most important his immediate action were the reasons our home sold in one day. We are now able to make plans to relocate. Victoria and Daniel Doyle