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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384 Bering Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 24009744 / Active
Experience spacious living at 384 Bering Lane, a captivating two-story residence boasting a generous main level and a convenient two-car garage. Up...
708 W Ashley Avenue
Folly Beach, SC 29439
Folly Beach
Residential
MLS# 24009742 / Active
Rarely does an opportunity like this come along on Folly Beach! This stunning property offers a versatile lifestyle--reside in the 2-bedroom, 2-bat...
207 Oakbend Street
Summerville, SC 29486
Nexton
Residential
MLS# 24009741 / Active
Welcome home to 207 Oakbend Street right in the heart of Nexton's prestigious Brighton Park Village. This Saussy Burbank Bayberry is one of the mos...
1390 Locals Street
Ridgeville, SC 29472
Summers Corner
Residential
MLS# 24009740 / Active
Welcome to Horizons, an exclusive 55+ gated active adult community situated in the highly desirable Summers Corner masterplan. Residents enjoy low-...
2095 Blue Bayou Boulevard
Johns Island, SC 29455
Twin Lakes
Residential
MLS# 24009739 / Active
Tucked away in the heart of Johns Island is a private enclave of Lowcountry style homes at Twin Lake. Nestled amongst the live oaks, this community...
1136 Ocean Forest Lane
Seabrook Island, SC 29455
Ocean Forest
Residential
MLS# 24009738 / Active
Located in the prestigious Ocean Pointe neighborhood, this beach home was sited to take advantage of incredible panoramic, 180 degree marsh and oce...
2590 Jenkins Point Road
Seabrook Island, SC 29455
Seabrook Island
Residential
MLS# 24009737 / Active
Every home on Jenkins Pt. capitalizes on the view, but few can compare to this exquisite home situated on Horseshoe Creek with unparalleled and swe...
1149 Dawn View Terrace
Mount Pleasant, SC 29464
New Parrish Village
Residential
MLS# 24009736 / Active
Welcome to New Parrish Village, a hidden gem of a neighborhood! Upon approaching the home, you're immediately welcomed by a charming front porch ma...
103 Pleasant Hill Drive
Goose Creek, SC 29445
Cokers Crossing
Residential
MLS# 24009733 / Active
Welcome to your dream home! Nestled in a serene neighborhood, this exquisite 5-bedroom, 3-full-bathroom residence boasts timeless elegance and comf...
572 Trotters Lane UNIT #151
Moncks Corner, SC 29461
Boykins Run
Residential
MLS# 24009732 / Active
PROPOSED CONTRUCTION Heron Floorplan. This is a luxury townhome with 2 car garage that lives like a single family home! Mudroom area, foyer, powder...
1347 Mandella Road
Bonneau, SC 29431
Residential
MLS# 24009731 / Active
This house and land are sure to exceed your expectations. The 5 acre plat of land has been cleared by hand with a master plan in mind. Privacy abou...
1750 Batten Drive
Charleston, SC 29414
Boltons Landing
Residential
MLS# 24009728 / Active
Pristine! This is the only way to describe this home! A large front porch greets you as you walk into the spacious foyer. Formal dining room to the...
3087 Morningdale Drive
Mount Pleasant, SC 29466
Ivy Hall
Residential
MLS# 24009726 / Active
Step into this wonderful 3-bedroom, 2.5-bathroom residence nestled in Ivy Hall. Upon entry, you're greeted by an inviting open floor plan, featurin...
Increase +$4,500
1041 Woodside Drive
Charleston, SC 29412
Lynwood
Residential
MLS# 24009725 / Active
Welcome to your chic dream home in the coveted area of James Island, where lifestyle and convenience meet. This single-family home has been meticul...
1366 Sassafrass Circle
Mount Pleasant, SC 29466
Dunes West
Residential
MLS# 24009722 / Active
This move-in ready, one-story open concept home is located in desirable Dunes West Neighborhood of Mount Pleasant. The home features an inviting, s...
257 Loocock Drive
Goose Creek, SC 29445
Royal Oaks
Residential
MLS# 24009719 / Active
This beautiful ranch-style home with spacious FROG boasts modern features and comfort. With open floor plan & 9' smooth ceilings throughout, this h...
1406 Locals Street
Summerville, SC 29485
Summers Corner
Residential
MLS# 24009717 / Active
Discover HORIZONS, a place where you can wake up with countless opportunities but no commitments. Where new friends share stories, ideas and advent...
1537 Willtown Street
Charleston, SC 29492
Daniel Island Smythe Park
Residential
MLS# 24009716 / Active
Southern living at its best! An exceptional single-story residence boasting three bedrooms, home office, gorgeous appointments and saltwater pool. ...
48 Clearblue Loop
Summerville, SC 29486
Nexton
Residential
MLS# 24009714 / Active
Welcome home to 48 Clearblue Loop, located in the prestigious Midtown community of Nexton! This home effortlessly blends elegance with ease, offeri...
325 Broadleaf Drive
Summerville, SC 29486
Autumn Creek
Residential
MLS# 24009713 / Active
Welcome to 325 Broadleaf Drive with no HOA. This custom-built home offers 3 bedrooms, 3 1/2 baths and provides you the space and freedom you've alw...
2 McDonough Road UNIT C-1
Folly Beach, SC 29439
Mariners Cay
Residential
MLS# 24009712 / Active
Warm weather is here! Mariners Cay Marina is a perfect location to have your boat in the water all year long or just for the season! This boat slip...
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