While many lenders will have varying requirements and may demand that a borrower submit different types of documentation, the following should be treated as a guideline of what is required in a pursuing a short sale.
Contact Your Lender Immediately:
You need to make the effort to find the right person responsible for handling a potential short sale. You want to talk to person in charge of loss mitigation for the lender, you want a supervisor's name, the name of the individual capable of making these kinds of decisions.
Submit a Letter of Authorization:
Your lenders will not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, Title Company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. You should include the following information: name, address, loan number, third party agents involved and contact information on both the agents and yourself.
A Preliminary Estimate of Your Lenders Proceeds:
A preliminary HUD-1 settlement statement that indicates the sales price you are under contract for and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your third party agent (realtor, title company or lawyer) should be able to prepare this for you. The bottom line should not indicate any net proceed to the seller.
Your Circumstances, In The Form of a Hardship Letter:
A complete description of the facts that brought you to financially challenging situation and why you have a valid reason for the lender to accept less than full payment. Lenders can understand many circumstances are unavoidable, loss of job, death, divorce, etc., but they are not very compassionate to situations involving dishonesty, misrepresentation or criminal (or criminally negligent) behavior.
A Complete Financial Statement:
Be truthful about your current financial situation and disclose your assets and liabilities. Provide information on savings accounts, money market accounts, stocks or bonds, cash, real estate or anything of tangible value. Your lender will need to be assured that you cannot pay back any shortfall in the short sale transaction.
Proof of Valuation:
Many homeowners caught by the current downturn of the real estate market have lost significant equity in their home. This should be part and parcel as to why you cannot sell your home for enough to pay off the existing lien. You need to substantiate this value to the lender through a proof of valuation. In declining value to the lender you could present a fully completed appraisal, a comparative market analysis (CMA) or a broker’s opinion of value.
Your Purchase Agreement and Listing Agreement:
The lender should want a copy of the executed offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to allow payment of certain items such as home protection plans or seller concessions inspections.
If your package is complete, the facts are accurate and the circumstances speak for themselves, the lender will approve your short sale. Within the ongoing communications and negotiations, you should ask that the lender not report any adverse credit references to the credit reporting agencies, although they would be under no obligation to accommodate this request.
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217 Clydesdale Circle
Summerville, SC 29486
Mackey Farms
Residential
MLS# 24009836 / Active
This gorgeous 2-story home features 4BR/2.5 BA, a covered front porch and sits on a beautiful pond homesite. This home has upgraded, flooring, cabi...
354 Parish Farms Drive
Summerville, SC 29486
Carnes Crossroads
Residential
MLS# 24009835 / Active
Looking to home school, work from home or for multi-generational living? This home offers many opportunities! Come live large in this 6 bedroom, 4....
2773 Mt Carmel Road
Walterboro, SC 29488
Residential
MLS# 24009833 / Active
Welcome to the privacy and tranquility of this one-of-a-kind, custom-built, tri-level estate! Located within Minutes of I-95 which conveniently pla...
320 Torslanda Lane
Summerville, SC 29486
Petterson Meadows
Residential
MLS# 24009832 / Active
Welcome to 320 Troslanda Lane, where modern elegance meets comfort in the sought-after Petterson Meadows neighborhood. This 2-year-old gem is in a ...
99 Schoonover Drive
Summerville, SC 29483
Pinehill Acres
Residential
MLS# 24009831 / Active
Excellent condition, 3 bedroom, 2 bathroom home sitting on a wonderful lot overlooking quiet Schoonover drive. The open concept floor plan is ideal...
1321 Cassidy Court UNIT A
Mount Pleasant, SC 29464
Remington Forest
Residential
MLS# 24009830 / Active
PREMIER LOCATION! This COASTAL 3 bedroom, 2 bath townhome boasts an unbeatable position just moments away from Sullivan's Island, Pitt Street Bridg...
9708 Jamison Road
Ladson, SC 29456
Residential
MLS# 24009829 / Active
Welcome to 9708 Jamison Rd., sprawling over 2200 square feet and situated on a mature half-acre lot in the heart of Ladson. With versatile spaces f...
314 Ripple Park Drive
Summerville, SC 29486
Nexton
Residential
MLS# 24009828 / Active
Welcome to 314 Ripple Park Drive located in the community of Nexton.The one-story Rosamarino floorplan is 1861sqft,3BD,2BA & INCLUDES an attached 4...
156 Callibluff Drive
Summerville, SC 29486
Carnes Crossroads
Residential
MLS# 24009827 / Active
Welcome to your dream home in the desirable Carnes Crossroads subdivision, where modern luxury meets comfort and convenience. Built in 2021, this s...
145 Yorkshire Drive
Moncks Corner, SC 29461
Foxbank Plantation
Residential
MLS# 24009826 / Active
This charming home offers the perfect blend of Charleston style and modern comforts. Featuring 3 bedrooms, 2 1/2 baths, a massive loft, and spannin...
206 Greenling Street
Goose Creek, SC 29445
Residential
MLS# 24009825 / Active
Need a GARAGE? Everyone at Winward Townes gets a single car garage plus so much more! This community features the Foster II home plan, which is equ...
3691 Coastal Crab Road
Mount Pleasant, SC 29466
Darrell Creek
Residential
MLS# 24009824 / Active
Nestled within the highly sought-after Darrell Creek neighborhood, 3691 Coastal Crab Road offers a rare opportunity to embrace serenity without com...
2428 Stadium Drive
North Charleston, SC 29406
University Park
Residential
MLS# 24009822 / Active
Welcome to your spacious 4-bedroom, 2.5-bath haven! Enjoy the convenience of a modern eat-in kitchen, complete with ample cabinet space, all applia...
106 Newcastle Court
Summerville, SC 29485
Irongate
Residential
MLS# 24009821 / Active
Welcome to your dream home in the desirable Irongate community of Summerville! This move-in ready gem boasts an array of features (including a stun...
145 Hedera Court
Summerville, SC 29486
Nexton
Residential
MLS# 24009820 / Active
Meticulously maintained Summerwood model with fenced in yard in Del Webb at Nexton-an Active Adult Community. Residents enjoy resort amenities such...
1121 Fulton Hall Lane
Mount Pleasant, SC 29466
Fulton
Residential
MLS# 24009819 / Active
Welcome to modern coastal living in the heart of Mount Pleasant! Centrally located across from Boone Hall Plantation, just 5 miles from the beach, ...
612 E Ashley Avenue
Folly Beach, SC 29439
Folly Beach
Residential
MLS# 24009818 / Active
This 4Bed / 2Bath, 2542 sqft, street to street (full Folly lot) property boasts a spacious, inviting interior with multiple comfortable and relaxat...
132 Wilton Drive
Summerville, SC 29483
Scotch Range
Residential
MLS# 24009817 / Active
Introducing 132 Wilton Drive, an exceptional property nestled within the serene Scotch Ranch subdivision in Summerville. This captivating residence...
107 Paige Court
Goose Creek, SC 29445
Crowfield Plantation
Residential
MLS# 24009816 / Active
Introducing 107 Paige Court, nestled in the prestigious Hamlets section of the Crowfield Plantation subdivision, a luxury community in the heart of...
232 Claret Cup Way
Charleston, SC 29414
Verdier Pointe
Residential
MLS# 24009812 / Active
PLANNED COMPLETION EARLY 2025. DESIGN CHOICES CAN STILL BE MADE! The Luca Plan offers a versatile open layout with a large kitchen island, separate...
7103 Stall Road
North Charleston, SC 29406
Ivey
Residential
MLS# 24009810 / Active
This charming fixer-upper nestled in North Charleston presents an exciting opportunity for those with a creative vision who enjoy a project. Situat...
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