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.

2092  Rookery Lane Charleston, SC 29414

2092 Rookery Lane
Charleston, SC 29414
Croghan landing

MLS# 15026008 / Active
5 br, 3 ba, 1 half bath, 2734 sqft

Great opportunity to own in croghan landing, just minutes away from downtown charleston. this property is one that you must see. are you looking f... 

Provided courtesy of Excellence Realty Group
1642  Pepperwood Court Charleston, SC 29414

1642 Pepperwood Court
Charleston, SC 29414
Carolina bay

MLS# 15024678 / Active
5 br, 4 ba, 3118 sqft

Great opportunity! beautiful home with an open floor plan! all hardwood floors in the foyer, living room and kitchen. large master bath upstairs... 

Provided courtesy of Century 21 Expert Advisors
2346  Maclaura Hall Avenue Charleston, SC 29414

2346 Maclaura Hall Avenue
Charleston, SC 29414
Maclaura hall

MLS# 15015336 / Active
4 br, 2 ba, 1 half bath, 2632 sqft

Fabulous traditional brick home in highly desirable maclaura hall. just a few of the many features of this beautiful home include: hardwood floors... 

Reduced -$9,900
Provided courtesy of ChuckTown Homes, LLC
556  Two Mile Run Johns Island, SC 29455

556 Two Mile Run
Johns Island, SC 29455
Grimball gates

MLS# 15013170 / Active
4 br, 2 ba, 1 half bath, 2781 sqft

Possible short sale! beautiful custom home in premier gated community on johns island, grimbal gates! deep water community on icw with 90+ acre na... 

Reduced -$6,000
Provided courtesy of Carolina One Real Estate
3605  Yacht Club Road Edisto Island, SC 29438

3605 Yacht Club Road
Edisto Island, SC 29438
2nd row

MLS# 15010767 / Active
3 br, 2 ba, 1409 sqft

This traditional edisto townhouse style duplex was redecorated and refurbished in the winter of 2014. enjoy being right across the street from the ... 

Provided courtesy of Atwood Vacations
1616  River Road Johns Island, SC 29455

1616 River Road
Johns Island, SC 29455
Fenwick hall

MLS# 15017615 / Active
3 br, 2 ba, 1 half bath, 3953 sqft

Great property! easy to show main home. call showtime go and show! 4 acres. below appraisal. convenient, minutes off river&maybank. open bright ho... 

Provided courtesy of Mary Ann Meyers Charleston Realty Inc.
1544  Hutton Place Charleston, SC 29407

1544 Hutton Place
Charleston, SC 29407
West ashley plantation

MLS# 15020558 / Active
4 br, 3 ba, 2407 sqft

No flooding or water intrusion from the recent flood! renovated & updated family home on the marsh with views of the river!!! beautiful and stunnin... 

Reduced -$52,495
Provided courtesy of AgentOwned Charleston Group
3024  Middle Street Sullivans Island, SC 29482

3024 Middle Street
Sullivans Island, SC 29482

MLS# 15018593 / Active
4 br, 3 ba, 1 half bath, 2855 sqft

Bring your clients to see this awesome home on sullivan's island. beautiful remodeling through the years and many upgrades with plans available for... 

Reduced -$90,000
Provided courtesy of Sand Dollar Real Estate Group

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. Last updated on 10-13-2015 6:11pm est.

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 2015 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 140