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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59 Anson Street
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Residential
MLS# 24010098 / Active
This exquisite historic home is nestled on the corner of Anson and Society Streets in the heart of the charming residential neighborhood of Ansonbo...
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8500 Palmetto Drive UNIT 104-H
Isle of Palms, SC 29451
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END UNIT, FIRST FLOOR, GORGEOUS BEACH VIEW. This turn key Tidewater condo is your chance to own a piece of paradise in Wild Dunes. This two bedroom...
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Residential
MLS# 24010090 / Active
Harleston Village, one of downtown Charleston's most popular neighborhoods, boasts Halsey Park, a new classically designed enclave. 59 A Barre Stre...
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Nestled on the serene Isle of Palms, this unique property boasts not one, but two, deepwater lots on picturesque Hamlin Creek, creating the perfect...
454 Sablewood Drive
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READY July 2024! The Laurel plan is a two story Lowcountry style home with a front porch for gathering. A small foyer is nestled inside with stairw...
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MLS# 24010084 / Active
Welcome home to St. John's Lake, Nestled Between Main Road and River Road, and Close to the Limehouse bridge. The community will feature a secluded...
14 Lagoon Villa
Isle of Palms, SC 29451
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Residential
MLS# 24010081 / Active
Welcome to 14 Lagoon Villa, a coastal paradise nestled within the prestigious Wild Dunes community. This charming villa offers an idyllic blend of ...
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Hanahan, SC 29410
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Residential
MLS# 24010080 / Active
Welcome home to this absolutely stunning single-family home located in the desirable Tanner Plantation subdivision of Hanahan. With a massive 2,812...
294 Oxford Road
Ladson, SC 29456
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MLS# 24010075 / Active
Recently completely renovated, this charming well-built home is sure to delight you! Enjoy relaxing on the front porch or entertaining in the sunny...
1299 Apache Pine Drive
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Residential
MLS# 24010074 / Active
Welcome home to 1299 Apache Pine located in the beautiful neighborhood of Tall Pines. This home is centrally located to I-26, Nexton, Volvo, and ju...
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This is a 4 bedroom 2 1/2 bath home plus a study and large loft area. Some of the upgraded features in this home are the lighting package, cabinets...
1110 Byrd Street
Edisto Island, SC 29438
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Tucked away on a quiet side street, this 6th row cottage has everything you'll need! 3BR/2BA w/ lg laundry/pantry/office. Open L/D/K w/ dining tabl...
466 Cedarview Road
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Welcome home to 466 Cedarview Road. Like new construction this home was built in 2022 and boasts 4 bedrooms and 2.5 bathrooms. Upon entering home n...
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Welcome to your spacious and stylish ranch-style retreat! This beautiful 3-bedroom, 2.5-bathroom home offers 2,467 square feet of luxurious living ...
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Location, Location, Location! This beautiful home is located in the highly desired neighborhood of Marlborough, conveniently located minutes away f...
7695 Haywood Street
North Charleston, SC 29418
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MLS# 24010068 / Active
This is such a convenient central Charleston location! This property offers easy access to I-26 and I-526, making commutes to work, CHS airport, an...
65 Red Bluff Street
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280 Pine Crest View Drive
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MLS# 24010064 / Active
The Hanover C is the power buy! Home boost 4 bedrooms 2.5 baths and a HUGE loft. Lennar is still the industry leader for included home features. Up...
5348 Sumters
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Residential
MLS# 24010063 / Active
Estate Sale. Great one-floor plan with flowing living space. Porch rocker front porch and screened porch at rear with private, wooded view. Riverch...
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