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.


3605  Yacht Club Road Edisto Island, SC 29438

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

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 ... 

$420,000
Provided courtesy of Atwood Vacations
509  Willow Branch Way Mount Pleasant, SC 29464

509 Willow Branch Way
Mount Pleasant, SC 29464
Hobcaw creek plantation
Residential

MLS# 14031450 / Active
4 br, 2 ba, 1 half bath, 2604 sqft

This is a great opportunity to buy in hobcaw creek plantation. this two story home is located off a tidal creek where you have access to kayaking a... 

$425,000
Provided courtesy of Carolina One Real Estate
1616  River Road Johns Island, SC 29455

1616 River Road
Johns Island, SC 29455
Fenwick hall
Residential

MLS# 1420743 / Active
3 br, 2 ba, 1 half bath, 3953 sqft

Great property! convenient location. just minutes off river and maybank open bright home w screen porch overlooking acreage & pond. rooms large. ... 

$485,000
Provided courtesy of Mary Ann Meyers Charleston Realty Inc.
4974  Green Dolphin Way Kiawah Island, SC 29455

4974 Green Dolphin Way
Kiawah Island, SC 29455
Kiawah island
Residential

MLS# 15013871 / Active
3 br, 3 ba, 1448 sqft

Approved short sale! 3 bedroom, 3 bath partly furnished villa with enclosed sunroom spacious deck overlooking golf course white kitchen has upgrad... 

$619,000
Provided courtesy of SCREOEXPERT.COM, THE REAL ESTATE EXPERTS
90  Ashley Avenue Charleston, SC 29401

90 Ashley Avenue
Charleston, SC 29401
Harleston village
Residential

MLS# 15004763 / Active
2 br, 1 ba, 1817 sqft

This historic charleston home was built in 1838. the front of this home was rebuilt in 1886, making this one of the more unique blends of architect... 

$775,000
Provided courtesy of Re/Max Elite LLC
73  Woodford Street Charleston, SC 29492

73 Woodford Street
Charleston, SC 29492
Daniel island
Residential

MLS# 15010450 / Active
5 br, 4 ba, 1 half bath, 3050 sqft

You will love this backyard oasis! lushly landscaped tropical setting with an in-ground peppletec swimming pool, water fountain, jacuzzi, slate sto... 

$875,000
Provided courtesy of Charleston Metro Homes, LLC.
224  King George Street Charleston, SC 29492

224 King George Street
Charleston, SC 29492
Daniel island park
Residential

MLS# 15001968 / Active
5 br, 3 ba, 1 half bath, 4417 sqft

-located in daniel island park on a peaceful tree-lined street sits this beautiful home offering an interior with exquisite designer appointments, ... 

$994,900
Provided courtesy of Daniel Island Real Estate Co Inc
90  Ashley Avenue Charleston, SC 29401

90 Ashley Avenue
Charleston, SC 29401
Harleston village
Residential

MLS# 14027976 / Active
6 br, 3 ba, 1 half bath, 5245 sqft

This historic charleston home was built in 1838 and sits on nearly 1/3 acres of meticulously manicured gardens and grounds. the front was rebuilt i... 

$1,800,000
Provided courtesy of Re/Max Elite LLC

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 05-27-2015 6:02pm est.

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