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.


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
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
4007  Braemar Ct Summerville, SC 29483

4007 Braemar Ct
Summerville, SC 29483
The glen at summerset
residential

MLS# 1117726 / Active
4 br, 2 ba, 1 half bath, 2394 sqft

Must see this home! . please bring your buyers and investors. large 4 bed 2.5 bath. in nice condition. 

$180,000
Provided courtesy of Lisa Jenkins of SOUTHERN RENAISSANCE REALTY, LLC
137  Adthan Cir Goose Creek, SC 29445

137 Adthan Cir
Goose Creek, SC 29445
Crowfield plantation
residential

MLS# 1305832 / Active
4 br, 2 ba, 1 half bath, 2089 sqft

Large home in very pretty neighborhood. gracious entrance hall with heart of pine floors, has stairs to second floor. to the right is a living r... 

$180,000
Reduced -$5,000
Provided courtesy of Jon Batten of RE/MAX Main Street Realty
5660  Dixie Plantation Rd Hollywood, SC 29449

5660 Dixie Plantation Rd
Hollywood, SC 29449
Hollywood
residential

MLS# 1401470 / Active
3 br, 2 ba, 1 half bath, 2205 sqft

Short sale! absolute gem! if you are looking for privacy, a large lot, rural living with no hoa fees this is your new home! the home features 3 ... 

$185,000
Reduced -$10,000
Provided courtesy of Caleb Pearson of REMAX Alliance
211  Pointer Dr Summerville, SC 29485

211 Pointer Dr
Summerville, SC 29485
Quail arbor
residential

MLS# 1410454 / Active
3 br, 2 ba, 1943 sqft

Check this out almost half acre lot brick home with 3 bedroom 2 full bath and a finished room over garage that can turn to a fourth bedroom. thi... 

$189,000
Provided courtesy of Dee Suffel of AgentOwned Premiere Group
223  Goldfinch Ln Summerville, SC 29485

223 Goldfinch Ln
Summerville, SC 29485
Arbor walk
residential

MLS# 1317322 / Active
4 br, 2 ba, 1 half bath, 2525 sqft

Wonderful 2-story on premium lot with gorgeous woods your rear neighbor!*running path,lovely newer n'hood beautifully located between summervill... 

$190,000
Provided courtesy of Owen Meislin of Owen G Meislin Real Estate

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