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.


107  Knottingham Dr Goose Creek, SC 29445

107 Knottingham Dr
Goose Creek, SC 29445
Crowfield plantation
residential

MLS# 1401635 / Active
4 br, 2 ba, 1 half bath, 2880 sqft

Lovely traditional home set on a wooded lot. enjoy the gracious old trees while sipping coffee on your screened porch. formal living room. separ... 

$220,000
Reduced -$10,000
Provided courtesy of Carolina One Real Estate
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... 

$225,000
Reduced -$15,000
Provided courtesy of Carolina One Real Estate
7303  Coopers Hawk Dr Hanahan, SC 29410

7303 Coopers Hawk Dr
Hanahan, SC 29410
Tanner plantation
residential

MLS# 1414368 / Active
4 br, 2 ba, 2004 sqft

Wonderful ranch plan with bonus in tanner plantation. open with lots of natural light this floor plan is flexibility at it's best. formal dining... 

$228,000
Reduced -$9,000
Provided courtesy of Coldwell Banker United, REALTORS
411  Tallow Ct Moncks Corner, SC 29461

411 Tallow Ct
Moncks Corner, SC 29461
Cypress ridge
residential

MLS# 1410790 / Active
4 br, 2 ba, 1 half bath, 3256 sqft

Beautiful murray ii floor plan in cypress ridge with 4 bedrooms. features stainless appliances and 9ft+ smooth ceilings. this is a great floor p... 

$230,000
Increase +$45,000
Provided courtesy of RE/MAX Pro Realty
7612  Stargazer Dr Hanahan, SC 29410

7612 Stargazer Dr
Hanahan, SC 29410
Tanner plantation
residential

MLS# 1400961 / Active
3 br, 2 ba, 2168 sqft

3 bedrooms + frog! if windows and natural daylighting are a preference for you, then the augusta is a natural! twelve-foot ceilings soar through... 

$230,000
Increase +$10,000
Provided courtesy of Carolina One Real Estate
5 South Held Cir Charleston, SC 29412

5 South Held Cir
Charleston, SC 29412
Creek point
residential

MLS# 1418876 / Active
3 br, 2 ba, 1450 sqft

This home has a fantastic floor plan and many nice features ! big front porch and a large screened back porch also . vaulted ceilings everywhere... 

$235,000
Reduced -$20,000
Provided courtesy of Carolina One Real Estate
5121  Timicuan Way Summerville, SC 29485

5121 Timicuan Way
Summerville, SC 29485
Wescott plantation
residential

MLS# 1412144 / Active
4 br, 3 ba, 1 half bath, 2850 sqft

4 bedrooms plus frog 3 full baths and 1/2 down-master on first floor-house located on cul-de-sac and house backs up to lake-separate dining room... 

$239,999
Reduced -$4,001
Provided courtesy of Carolina One Real Estate
1713  Waterside Blvd Moncks Corner, SC 29461-7157

1713 Waterside Blvd
Moncks Corner, SC 29461-7157
Pimlico
residential

MLS# 1419855 / Active
3 br, 2 ba, 2 half bath, 2709 sqft

Want a large ranch on an acre on the lake? have i got the home for you.3 bedrooms, 2 full and 2 half baths. large eat in kitchen, family room an... 

$240,000
Provided courtesy of AgentOwned Premiere Group
8622  Woodland Walk North Charleston, SC 29420-7435

8622 Woodland Walk
North Charleston, SC 29420-7435
Coosaw creek country club
residential

MLS# 1424343 / Active
3 br, 2 ba, 1 half bath, 2538 sqft

Cared for potential short sale in gated community. very well appointed. vacant and ready for occupancy. hardwoods in foyer, kitchen, living and ... 

$245,000
Provided courtesy of Carolina One Real Estate
3452  Forest Glen Dr Charleston, SC 29414-7540

3452 Forest Glen Dr
Charleston, SC 29414-7540
Village green
residential

MLS# 1410859 / Active
4 br, 3 ba, 1 half bath, 2666 sqft

looking for a gorgeous home, in a great community, at an excellent price? then this truly beautiful home is a must-see! everything you want in ... 

$247,600
Provided courtesy of Home Solution Real Estate Services

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