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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824 Hill Branch Road
Ridgeville, SC 29472
Residential
MLS# 23019918 / Active
Welcome to this exquisite luxury estate nestled on 28.7 acres of pristine land in Ridgeville! With a swimming pool, a pool house, a tennis court, a...
717 Central Avenue
Summerville, SC 29483
Residential
MLS# 23019810 / Active
Charming 2 bedroom apartment in the heart of Summerville with flex space below and over 60' of street frontage, on heavily traveled Central Avenue....
Increase +$50,000
3502 Waterway Boulevard
Isle of Palms, SC 29451
Forest Trail
Residential
MLS# 23019797 / Active
Contemporary Lowcountry home with amazing views of the Intracoastal Waterway. Estimated completion Fall 2024. This property is the perfect blend of...
Increase +$145,000
453 Evening Glow Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23019771 / Active
Estimated for February closing, this Enthusiast inventory home is nicely upgraded. LIST PRICE REFLECTS OVER$50K IN FREE OPTIONS AS PART OF OUR PRE-...
Increase +$4,000
111 Duett Court
Summerville, SC 29486
Petterson Meadows
Residential
MLS# 23019701 / Active
This popular Telfair model is MOVE IN READY and features a downstairs guest room! 5 bedrooms total with a separate dining room, spacious kitchen an...
Increase +$5,000
2249 Blue Bayou Boulevard
Johns Island, SC 29455
Twin Lakes
Residential
MLS# 23019619 / Active
Experience modern comfort in this stylish 4-bed, 2.5-bath home featuring a main-floor primary suite. Revel in the spacious family room, sleek gas g...
Increase +$46,295
714 Blueway Avenue
Summerville, SC 29486
Nexton
Residential
MLS# 23019599 / Active
NEW CONSTRUCTION, MOVE-IN READY HOME! This home has a beautiful exterior with a full front porch (30'x8') with metal roof and a hanging gas lantern...
Increase +$9,925
69 Morris Street UNIT #302
Charleston, SC 29403
Radcliffeborough
Residential
MLS# 23019539 / Active
Living in a popular and prominent city, it is rare for one to find an eloquent condo nestled in a downtown residential neighborhood. One level, fif...
Increase +$95,000
354 King St Street UNIT B
Charleston, SC 29401
Residential
MLS# 23019459 / Active
This is a beautiful open space that can accommodate a number of design plans. Current floor plan has no structural obstacles. Large windows along ...
254 Symphony Avenue
Summerville, SC 29486
Nexton
Residential
MLS# 23019450 / Active
End unit Broadway plan. Unit has lots of windows to let in natural light with plenty of upgrades! 2 car garage, open plan, LVP flooring throughout ...
Reduced -$20,000
635 Faulkner Drive
Mount Pleasant, SC 29466
Alston Point
Residential
MLS# 23019435 / Active
Build your marshfront dream home on over an acre of Mount Pleasant land! This exquisite 2-acre homesite boasts an impressive 170 feet of coastline ...
785 Copperhead Trail
Johns Island, SC 29455
Residential
MLS# 23019421 / Active
A truly rare opportunity to own this expansive property with breathtaking Water Views, featuring an almost-New four bedroom, two and a half bathroo...
Reduced -$105,000
710 S. Magnolia Street
Summerville, SC 29483
Residential
MLS# 23019417 / Active
This brick colonial style home is located in downtown historic Summerville. You will enjoy relaxing on the front porch or newly refurbished back de...
2847 Anchor Watch Drive
Wadmalaw Island, SC 29487
Anchorage Plantation
Residential
MLS# 23019406 / Active
This exquisite, traditional brick home nestled on Bohicket Creek in Wadmalaw Island's gated Anchorage Plantation, was crafted in 2018 by one of Col...
Reduced -$455,000
639 Faulkner Drive
Mount Pleasant, SC 29466
Alston Point
Residential
MLS# 23019381 / Active
Seize the opportunity to build your dream home on this captivating 2+ acre homesite, boasting an impressive 175 feet of coastline along the picture...
615 Faulkner Drive
Mount Pleasant, SC 29466
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Residential
MLS# 23019370 / Active
Seize the opportunity to build your dream home on this captivating 2+ acre homesite, boasting an impressive 175 feet of coastline along the picture...
1091 Capersview Court
Awendaw, SC 29429
The Overlook at Copahee Sound
Residential
MLS# 23019329 / Active
Find your slice of paradise at our Newest highly-anticipated community: The Overlook @ Copahee Sound! These ENERGY STAR Certified ELEVATED drive un...
Increase +$47,918
188 Coming Street
Charleston, SC 29403
Cannonborough-Elliotborough
Residential
MLS# 23019211 / Active
Nestled within the vibrant short-term rental overlay of Charleston's historic district, this exceptional property presents an enticing opportunity ...
2422 Highway 174
Edisto Island, SC 29438
Edisto Island
Residential
MLS# 23019187 / Active
Ten-minute drive to Edisto Beach!! This lovely home has 3 bedrooms, 2 full baths with approx.1800 sq ft on 1.99 acres of land+/-.Hardwood floors th...
Reduced -$15,000
104 Aplomb Alley
Charleston, SC 29414
Bermuda Pointe Towns
Residential
MLS# 23019139 / Active
BRAND NEW TOWNHOME READY MAY/JUNE 2024!! This home has marsh views! Bermuda Pointe Towns is located in West Ashley just off of HWY 61, tucked in al...
1880 Andell Bluff Boulevard UNIT E-8
Seabrook Island, SC 29455
Bohicket Marina
Residential
MLS# 23019107 / Active
Great boat slip at Bohicket Marina, the 3rd spot from the end of E dock. Easy to dock from the Bohicket River. This slip is situated midway down th...
Reduced -$4,000
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 EXP Realty LLC 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 05-03-2024 11:30 PM 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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