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.


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
656  Coleman Boulevard Mount Pleasant, SC 29464

656 Coleman Boulevard
Mount Pleasant, SC 29464
Six fifty six coleman
Residential

MLS# 1318178 /
4 br, 3 ba, 1 half bath, 2586 sqft

Luxury condo located in the heart of the coleman blvd revitalization district, close to downtown charleston and the beaches. end unit with 4 bedroo... 

$352,000
Provided courtesy of Carolina One Real Estate
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... 

$354,900
Reduced -$5,000
Provided courtesy of ChuckTown Homes, LLC
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... 

$365,000
Reduced -$10,000
Provided courtesy of Re/Max Advanced Realty
2273  Redfern Lane Mount Pleasant, SC 29466

2273 Redfern Lane
Mount Pleasant, SC 29466
Planters pointe
Residential

MLS# 1412060 /
4 br, 2 ba, 1 half bath, 2570 sqft

Perfect family home located in sought after planters pointe! 4 bedroom 2.5 bath home with eat-in kitchen, open to the family room. this home offers... 

$369,500
Reduced -$8,500
Provided courtesy of Carolina Elite Real Estate
833  Captain Toms Crossing Johns Island, SC 29455

833 Captain Toms Crossing
Johns Island, SC 29455
Grimball gates
Residential

MLS# 1416544 /
4 br, 3 ba, 2986 sqft

Possible short sale in grimball gates that needs a little tlc. everything from a grand entrance with a fountain in the front yard to koi fish pond ... 

$390,000
Provided courtesy of Keller Williams Realty Charleston
8170  Natty Road Edisto Island, SC 29438

8170 Natty Road
Edisto Island, SC 29438
Edisto island
Residential

MLS# 14028402 /
3 br, 3 ba, 3134 sqft

Location, location, location this is a great opportunity for a private home buyer or investor to buy into edisto island which is located in the sou... 

$400,000
Provided courtesy of Carolina One Real Estate
3334  Porchview Place Johns Island, SC 29455

3334 Porchview Place
Johns Island, SC 29455
The villages in st johns woods
Residential

MLS# 1309536 /
4 br, 2 ba, 1 half bath, 2503 sqft

Beautiful home in the villages in st johns woods located on one of the larger lots on the horseshoe across from the 3/4 acre park with gazebo. h... 

$425,000
Reduced -$14,000
Provided courtesy of Keller Williams Realty Charleston West Ashley
2351  Palmer Charleston, SC 29412

2351 Palmer
Charleston, SC 29412
Oak island
Residential

MLS# 1405450 /
3 br, 3 ba, 1 half bath, 2994 sqft

Seller motivated bring all offers! waterfront living at its finest! absolutely stunning deep water home, built on a double lot with sweeping views ... 

$699,000
Reduced -$51,000
Provided courtesy of Brand Name Real Estate
212  Royal Assembly Drive Charleston, SC 29492

212 Royal Assembly Drive
Charleston, SC 29492
Beresford hall
Residential

MLS# 1411570 /
5 br, 5 ba, 1 half bath, 4246 sqft

Back on the market with an approved short sale price! southern elegance at its finest! this gorgeous 5 bedroom 5.1 bath home is ready for a new fam... 

$765,000
Provided courtesy of Charleston Homes

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.

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