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.


103  Crosby Court Goose Creek, SC 29445

103 Crosby Court
Goose Creek, SC 29445
Liberty hall plantation
Residential

MLS# 1407333 /
4 br, 3 ba, 1 half bath, 2416 sqft

Charleston style home without the charleston taxes and high price tag. lovely, double porches and dual masters. gleaming hardwood floors and cerami... 

$240,000
Increase +$40,000
Provided courtesy of Carolina One Real Estate
56  Bedon Road Walterboro, SC 29488

56 Bedon Road
Walterboro, SC 29488
None
Residential

MLS# 1413332 /
3 br, 3 ba, 2843 sqft

Welcome to the lowcountry! looking for large oaks, spanish moss, an aged magnolia tree, variegated camellias, & azaleas? look no further! this prop... 

$250,000
Provided courtesy of C-21 Girardeau Realty & Const
5087  Blair Road Summerville, SC 29483

5087 Blair Road
Summerville, SC 29483
Myers mill
Residential

MLS# 14029470 /
6 br, 3 ba, 3199 sqft

The owner's loss is your gain, as the owner is selling this for less than what was paid at construction. a custom brick walkway leads you to the sp... 

$250,000
Provided courtesy of The Group, LLC
1601  Seloris Court Charleston, SC 29407

1601 Seloris Court
Charleston, SC 29407
Residential

MLS# 1406497 /
3 br, 2 ba, 1 half bath, 1534 sqft

Don't miss this lovely home in geneva lake. convenient to i-526, downtown charleston and charleston international airport. home is less than 8 year... 

$260,000
Provided courtesy of Carolina Elite Real Estate
103 S Warwick Trace Goose Creek, SC 29445

103 S Warwick Trace
Goose Creek, SC 29445
Crowfield plantation
Residential

MLS# 14028821 /
4 br, 2 ba, 1 half bath, 3059 sqft

Stately brick traditional two story home located in 'the hamlets' the golf course community of crowfield plantation. this home features an impressi... 

$275,000
Provided courtesy of Carolina One Real Estate
1238  White Tail Path Charleston, SC 29414

1238 White Tail Path
Charleston, SC 29414
Hunt club
Residential

MLS# 1402563 /
4 br, 2 ba, 1 half bath, 3236 sqft

Location, location, location as you enter the front foyer of the property this leads into the formal living room which flows into the dining roo... 

$300,000
Provided courtesy of Carolina One Real Estate
1786  Cornsilk Drive Charleston, SC 29414

1786 Cornsilk Drive
Charleston, SC 29414
Carolina bay
Residential

MLS# 1425672 /
4 br, 3 ba, 1 half bath, 2450 sqft

Great opportunity to own this nice 4 bedroom and 3.5 bath house located in carolina bay subdivision. this home features high ceilings, hardwood flo... 

$310,000
Reduced -$29,900
Provided courtesy of ERA Wilder Realty
200  River Landing Drive Charleston, SC 29492

200 River Landing Drive
Charleston, SC 29492
Daniel island
Residential

MLS# 1205212 /
2 br, 2 ba, 1 half bath, 1664 sqft

Great short sale opportunity - back on market at lender approved price. bpo has already been done and working with negotiator for a quickly expedit... 

$345,000
Provided courtesy of Daniel Island Real Estate Co Inc
1116  Quick Rabbit Charleston, SC 29414

1116 Quick Rabbit
Charleston, SC 29414
Hunt club
Residential

MLS# 1403661 /
4 br, 2 ba, 1 half bath, 2750 sqft

This is a short sale. beautiful home open floor plan, formal dining room, solid countertops, stainless appliances. screen porch. hardwood floors up... 

$345,000
Reduced -$5,000
Provided courtesy of Re/Max Advanced Realty
1021  Blockade Runner Court Charleston, SC 29414

1021 Blockade Runner Court
Charleston, SC 29414
Schieveling plantation
Residential

MLS# 1416098 /
4 br, 2 ba, 1 half bath, 2895 sqft

Immaculate traditional home in highly desirable schieveling plantation in west ashley. this fabulous home features: gleaming hardwood floors, ne... 

$350,000
Reduced -$4,900
Provided courtesy of ChuckTown Homes, LLC

Broker Reciprocity 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 Carolina One Real Estate 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.

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.

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