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.


417  Green Park Ln Goose Creek, SC 29445

417 Green Park Ln
Goose Creek, SC 29445
Brickhope greens
residential

MLS# 1217270 / Active
3 br, 2 ba, 1 half bath, 2254 sqft

***pre-approved short sale price! make an offer!!!*** large 3br/2.5ba home with huge bonus room! downstairs has oversized family room open to th... 

$165,000
Increase +$100
Provided courtesy of Candace Pratt of RE/MAX Pro Realty
284  Killarney Trl Moncks Corner, SC 29461-8836

284 Killarney Trl
Moncks Corner, SC 29461-8836
Foxbank plantation
residential

MLS# 1400552 / Active
4 br, 2 ba, 1 half bath, 1920 sqft

Bank-approved sales price! this is a lowcountry charleston single built by sabal homes with great curb appeal and double front porches that back... 

$165,000
Reduced -$6,000
Provided courtesy of Stephanie Davis of The Boulevard Company, LLC
1614  Bennett Cir Holly Hill, SC 29059

1614 Bennett Cir
Holly Hill, SC 29059
None
residential

MLS# 1402108 / Active
4 br, 2 ba, 2200 sqft

Nice 4 bedroom 2 bath home in nice quiet neighborhood on a double lot.hardwood floors in living room,dining room ,foyer, hall and all bedrooms.s... 

$165,000
Provided courtesy of Karen Brown of AgentOwned Realty Co. Premier Group, Inc.
101  Corrientes Ct Summerville, SC 29483-8419

101 Corrientes Ct
Summerville, SC 29483-8419
Plum creek
residential

MLS# 1407705 / Active
4 br, 2 ba, 1 half bath, 1883 sqft

Wow! 100% financing available for qualified buyers! your buyer can own this home cheaper than renting & with no down payment! this home offers an o... 

$165,000
Provided courtesy of Brenda Stark of AgentOwned Premiere Group
1601  Seloris Ct Charleston, SC 29407-4797

1601 Seloris Ct
Charleston, SC 29407-4797
Geneva lake
residential

MLS# 1406497 / Active
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 y... 

$170,000
Provided courtesy of Toni Cooper of Carolina Elite Real Estate
169  Sweet Alyssum Dr Ladson, SC 29456

169 Sweet Alyssum Dr
Ladson, SC 29456
Summer park
residential

MLS# 1118316 / Active
4 br, 2 ba, 1 half bath, 2114 sqft

Short sale approved. this is a fantastic deal on rylands brookgreen model. lots of windows to allow natural light. lots of space. kitchen overlo... 

$175,000
Reduced -$14,000
Provided courtesy of Diana Johnson of Carolina One Real Estate
1033  Sterling Ln Summerville, SC 29483

1033 Sterling Ln
Summerville, SC 29483
The glen at summerset
residential

MLS# 1400224 / Active
4 br, 2 ba, 1 half bath, 2096 sqft

A must see home in the glen at summerset. the glen is a wonderful neighborhood located in the dorchester ii school district. home sits on a larg... 

$175,000
Reduced -$5,000
Provided courtesy of David Wertan of REMAX Advanced Realty
401  Elgin Ct Summerville, SC 29483

401 Elgin Ct
Summerville, SC 29483
Scotts mill
residential

MLS# 1409434 / Active
4 br, 3 ba, 1 half bath, 2224 sqft

Definitely a home you don't want to miss! beautiful move-in ready home on corner lot in cul-de-sac! this 4br home features a very open floor pla... 

$176,500
Provided courtesy of Sarah Coleman-Lee of AgentOwned Realty Co. Premier Group, Inc.
300  Brickhope Ln Goose Creek, SC 29445

300 Brickhope Ln
Goose Creek, SC 29445
Brickhope greens
residential

MLS# 1409765 / Active
4 br, 2 ba, 1 half bath, 2200 sqft

Are you looking for an open floor plan with plenty of room for the whole family? you have found it! with 4 bedrooms and 2,200 sq ft this brickho... 

$177,000
Provided courtesy of Caleb Pearson of REMAX Alliance
288  Killarney Trl Moncks Corner, SC 29461

288 Killarney Trl
Moncks Corner, SC 29461
Foxbank plantation
residential

MLS# 1408557 / Active
3 br, 2 ba, 1 half bath, 1976 sqft

Gorgeous coffman-b floor plan by david weekley! this lovely home boasts double front porches & rear screened porch giving you great outdoor living ... 

$179,000
Provided courtesy of Jana Bantz of Prudential Southern Coast Real Estate

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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