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.


3460  Claremont St Mount Pleasant, SC 29466

3460 Claremont St
Mount Pleasant, SC 29466
Park west
residential

MLS# 1414218 / Active
3 br, 2 ba, 1 half bath, 2500 sqft

Great investment opportunity!!!well maintained multi-story townhome in desirable park west subdivision. living/dining room combo on the main lev... 

$244,500
Reduced -$5,000
Provided courtesy of Radekopf And Associates
838  Bent Hickory Rd Charleston, SC 29414

838 Bent Hickory Rd
Charleston, SC 29414
Grand oaks plantation
residential

MLS# 1418037 / Active
4 br, 2 ba, 1 half bath, 2240 sqft

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... 

$250,000
Reduced -$15,000
Provided courtesy of Carolina One Real Estate
533  Chaff Ln Moncks Corner, SC 29461

533 Chaff Ln
Moncks Corner, SC 29461
Spring grove plantation
residential

MLS# 1403009 / Active
5 br, 3 ba, 1 half bath, 3540 sqft

Beautiful large home. large open kitchen with solid surface counter tops and stainless appliances. wood floors on first floor, screened in porch... 

$250,000
Reduced -$10,000
Provided courtesy of Re/Max Advanced Realty
1501  Heron Point Ct Hanahan, SC 29410-8253

1501 Heron Point Ct
Hanahan, SC 29410-8253
Tanner plantation
residential

MLS# 1307000 / Active
5 br, 2 ba, 1 half bath, 2630 sqft

This 5 bedroom home is in the reserve on a private pond lot and is located at the end of a quiet street. this spacious floor plan opens up to bo... 

$265,000
Provided courtesy of AgentOwned Premiere Group
8684  Arthur Hills Cir North Charleston, SC 29420

8684 Arthur Hills Cir
North Charleston, SC 29420
Coosaw creek country club
residential

MLS# 1412608 / Active
4 br, 2 ba, 1 half bath, 2913 sqft

Approved short sale. expansive home on the 15th green in sought after coosaw creek country club. large corner lot with private backyard perfect ... 

$279,400
Provided courtesy of ChuckTown Homes, LLC
606  Summerfield Ct Charleston, SC 29414

606 Summerfield Ct
Charleston, SC 29414
Grand oaks plantation
residential

MLS# 1417072 / Active
4 br, 2 ba, 1 half bath, 2803 sqft

** gorgeous home with sweeping views of large neighborhood pond located on a quiet cul-de-sac ** short sale ** walk in to a spacious foyer with ... 

$285,000
Provided courtesy of Keller Williams Realty Charleston
1207  Forestwood Dr Charleston, SC 29407

1207 Forestwood Dr
Charleston, SC 29407
Parkwood estates
residential

MLS# 1326814 / Active
4 br, 3 ba, 2108 sqft

No showings until further notice ::: located only 3 traffic lights from downtown charleston and only a few blocks to the shopping & dining enter... 

$289,000
Increase +$40,000
Provided courtesy of Re/Max Advanced Realty
113  Bald Cypress Ct Summerville, SC 29485

113 Bald Cypress Ct
Summerville, SC 29485
Legend oaks plantation
residential

MLS# 1318340 / Active
3 br, 2 ba, 2 half bath, 2974 sqft

This lovely home was built by saussy burbank and features full front porch and a large entry foyer. the formal living and dining and foyer have ... 

$289,900
Increase +$29,900
Provided courtesy of Carolina One Real Estate
5117  Village Crier Ln Summerville, SC 29485

5117 Village Crier Ln
Summerville, SC 29485
Wescott plantation
residential

MLS# 1405761 / Active
6 br, 3 ba, 3362 sqft

Price reduced! great home in pine valley section of westcott plantation with 6 bedrooms 3 baths in golf course community! this one of a kind home i... 

$293,000
Reduced -$1,000
Provided courtesy of Keller Williams Realty Charleston West Ashley
276  Country Club Blvd St George, SC 29477

276 Country Club Blvd
St George, SC 29477
St. george country club
residential

MLS# 1412492 / Active
4 br, 2 ba, 1 half bath, 3558 sqft

Unbelievable price on upgraded home on 1 acre ** short sale with experienced short sale negotiator in place ** built in 2005 with nice upgrades ... 

$299,000
Reduced -$10,000
Provided courtesy of Keller Williams Realty Charleston

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.

Copyright 2014 Charleston Trident Multiple Listing Service, Inc. All rights reserved.

Full MLS Access









Search Advanced Search Reset Search Jump to Area Search

Area Information

Find homes for sale and explore any area of Charleston by using the links below.

Active Homes for Sale

Hanahan 173