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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322 Horseshoe Road
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Residential
MLS# 24010982 / Active
Escape to the countryside with no HOA constraints! This charming 4-bedroom, 3-bathroom 2432 sq ft home sprawls across .86 acres and features a new ...
107 Wonder Sol Way
Summerville, SC 29485
Summers Corner
Residential
MLS# 24010981 / Active
The popular Rutledge plan offers 4 bedrooms and a loft! First floor areas include the owner's suite, open-concept main living areas complete with k...
410 Jean Wells Drive
Goose Creek, SC 29445
Boulder Bluff
Residential
MLS# 24010980 / Active
Discover affordable living with endless potential in this charming home priced at just $200,000. Situated on a spacious lot without the hassle of a...
1555 Scott Hill Road
Charleston, SC 29412
Residential
MLS# 24010977 / Active
Completely remodeled home on .73 acre lot within walking distance to James Island Elementary School and the new James Island Library. Ride your LSV...
160 Salt Yard Landing
Summerville, SC 29485
Summers Corner
Residential
MLS# 24010976 / Active
This two-story home features double front porches (upstairs balcony accessed through master bedroom) 10ft ceilings, 8ft interior doors on the main ...
154 Salt Yard Landing
Summerville, SC 29485
Summers Corner
Residential
MLS# 24010974 / Active
*Est completion May 2024* The Elliot Plan- This traditional Charleston style home features a large front, covered porch and first floor guest room....
162 W Bradford Pointe Drive
Summerville, SC 29486
Nexton
Residential
MLS# 24010972 / Active
Popular Bradford Pointe is located near everything Nexton has to offer, Golf cart trails, restaurants, shopping and soon to be County Park. This is...
236 Brookshire Road
Goose Creek, SC 29445
Liberty Hall Plantation
Residential
MLS# 24010971 / Active
Welcome to your cozy retreat at 236 Brookshire rd, nestled on a quiet corner in Liberty Hall Plantation. This well-maintained 2-bedroom, 2.5-bathro...
2579 Helmsman Road
Johns Island, SC 29455
Kiawah River
Residential
MLS# 24010970 / Active
Welcome to the enchanting Butterfly Cottage at 2579 Helmsman, a masterpiece crafted by renowned architect Julia Star Sanford and brought to life by...
2736 Rush Haven Drive
Mount Pleasant, SC 29466
Dunes West
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MLS# 24010967 / Active
Indulge in coastal living in this sprawling deep water home on the Wando River enjoying this 5 + bed, 4.5 + bath Mount Pleasant estate. Offering ov...
2380 The Haulover
Johns Island, SC 29455
Seabrook Island
Residential
MLS# 24010966 / Active
This residence sits high overlooking the marsh & has a vacant lot to the right so there is plenty of privacy.The home is totally open with windows ...
4313 Lady Banks Lane
Ravenel, SC 29470
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Residential
MLS# 24010964 / Active
Welcome to this exquisite home nestled on a private .74-acre wooded lot within the prestigious gated community of Poplar Grove. Boasting 5 bedrooms...
151 W Bradford Pointe Drive
Summerville, SC 29486
Nexton
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MLS# 24010963 / Active
One level living! This ibis model has Four bedrooms two bath with screened in lanai on a wooded lot. This perfectly sized home is well equipped wit...
4068 O'Hear Avenue UNIT #4
North Charleston, SC 29405
Cooper River Townes
Residential
MLS# 24010962 / Active
Cooper River Townes is an exciting new townhome community just minutes from Park Circle and Riverfront Park! This end unit Fenwick is a drive under...
1695 Crab Bank Drive
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Carolina Park
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MLS# 24010960 / Active
NEW CONSTRUCTION Just Completed and Ready for Move In! Custom Spec Home by local award winning builder. Huge Marshfront homesite (.85 acres) on cul...
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Mount Pleasant, SC 29466
Park West
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MLS# 24010959 / Active
Come see this beauty before it is gone. One level living on this second floor end unit is hard to find in The Battery of Park West. A lot of upgrad...
108 Heron Lane
Goose Creek, SC 29445
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Residential
MLS# 24010957 / Active
Welcome to 108 Heron Lane! As you approach, you'll be greeted by a meticulously maintained yard, hinting at the care and attention to detail found ...
449 Nelliefield Trail
Wando, SC 29492
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MLS# 24010953 / Active
Welcome to the serene charm of Nelliefield, where community meets convenience in a vibrant, picturesque setting. Nestled on a desirable corner lot,...
107 Youth Boulevard
Moncks Corner, SC 29461
Lake Moultrie Estates
Residential
MLS# 24010949 / Active
Welcome to 107 Youth Blvd., a charming 3-bedroom, 2.5-bathroom home nestled in the heart of Moncks Corner, SC. Well-decorated and meticulously care...
407 Greenmeadow Drive
Goose Creek, SC 29445
Greenslake Condominiums
Residential
MLS# 24010948 / Active
This well maintained 3 Bedroom/3 Bathroom upstairs condo is a great option for someone looking for low-maintenance living with the perfect blend of...
547 Travelers Boulevard
Summerville, SC 29485
Brookfield Square
Residential
MLS# 24010944 / Active
Welcome to 547 Travelers Boulevard! This 2-bedroom and 2.5-bathroom townhouse located in the heart of Historic Summerville and ready for new owners...
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