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.

400  Barfield Drive Summerville, SC 29485

400 Barfield Drive
Summerville, SC 29485
Walnut farms

MLS# 15015636 / Active
5 br, 3 ba, 1 half bath, 3905 sqft

Great one story floor plan, soaring ceilings, huge entry foyer opens to spacious dining room and huge living room master bedroom site is off to it... 

Provided courtesy of RE/MAX Pro Realty
8170  Natty Road Edisto Island, SC 29438

8170 Natty Road
Edisto Island, SC 29438
Edisto island

MLS# 14028402 / Active
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... 

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# 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. ... 

Reduced -$20,000
Provided courtesy of Mary Ann Meyers Charleston Realty Inc.
4134  Jean Laffite Hollywood, SC 29449

4134 Jean Laffite
Hollywood, SC 29449
Royal harbor

MLS# 1322352 / Active
5 br, 3 ba, 3576 sqft

This is a pre-approved short sale. views galore! this beautiful, elevated lowcountry home overlooks the stono river with views all the way to th... 

Provided courtesy of Pathway Real Estate Group, LLC
1183  Fort Lamar Road Charleston, SC 29412

1183 Fort Lamar Road
Charleston, SC 29412

MLS# 15013178 / Active
4 br, 3 ba, 3228 sqft

Bring offers.listed below appraisal.this plantation style estate has recently undergone updating. located in the historic secessionville district, ... 

Provided courtesy of Handsome Properties, Inc.
3024  Middle Street Sullivans Island, SC 29482

3024 Middle Street
Sullivans Island, SC 29482
Sullivans island

MLS# 15014288 / Active
3 br, 3 ba, 1 half bath, 2855 sqft

Located at the north end of si, this home is a great island retreat with lots of room for entertaining. there are beautiful wood floors throughout,... 

Provided courtesy of Kathy Jordan Properties
90  Ashley Avenue Charleston, SC 29401

90 Ashley Avenue
Charleston, SC 29401
Harleston village

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... 

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 07-02-2015 6:03pm 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.

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