Legal Implications of a Short Sale

Short sales allow a homeowner to close on the sale of property when it is worth less than the debts secured by it. Typically, the lender agrees to accept the net proceeds from a closing in exchange for releasing its lien. Lenders are not agreeing to a short sale to be generous, they are convinced that it will come out better than it would by foreclosing on the home and pursuing the borrower for its losses.

While the procedures for a short sale will vary from lender to lender, most lenders need to be convinced of the following:

The Sales Price Is Not Too Low 

The sales price of contract is equal to what they would be able to sell the property for after a foreclosure. While the lender may review the market analysis provided by the agent, they will often confirm the market analysis by contacting its own sources, such as an appraiser.

All Costs Associated With The Sale

The commission for the transaction is equal to the commission it would pay its agent for selling the home after foreclosure. The lender will need to know as precisely as possible the amount of proceeds it can expect to receive from the sale.

A Good Reason They Should Accept It

The lender will want an explanation of the circumstances, which caused short sale in the first place. These usually include death, medical problems, divorce, loss of a job, or a job displacement requiring a move.

A Financial Package On The Seller

The seller doesn't have the resources to make up the mortgage shortfall on their own. The lender will require a full assessment of the financial condition of the seller. Financial statements, income and expenses, tax returns and the seller's paycheck stubs should be provided. The seller's financial condition is a tricky proposition. While the lender will be reluctant to approve a compromise without reviewing strength of the seller, this information will help the lender in pursuing the seller for a post-foreclosure deficiency if the short sale does not take place.

So What Is The Risk?

A seller with few assets, little or no income, and a willingness to file bankruptcy has little to lose by providing this information. Those with other assets, a good job with garnishable wages, or a desire to avoid bankruptcy will put themselves at risk in the process. Those considering a short sale need expert legal advice regarding the wisdom of submitting financial information to the lender.

 

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206 Oxford Way
Summerville, SC 29486
Sangaree
Residential

MLS# 18010733 / Active
3 br, 2 ba, 1056 sqft

This 3 bedroom, 2 bathroom home is located in Sangaree, close to I-26 and the new Nexton Square development, great location! The living areas have ... 

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$120,000
Provided courtesy of Palm Realty Group, llc

328 Whispering Breeze Lane
Summerville, SC 29483
Cane Bay Plantation
Residential

MLS# 18010261 / Active
4 br, 2 ba, 1 half bath, 2744 sqft

Don't wait for new construction!!! Welcome Home!!! This beautiful four bedroom two and a half bath home sits on a corner lot with scenic views. Thi... 

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$319,900
Provided courtesy of Carolina One Cane Bay/ Nexton

103 Bayleaf Court
Summerville, SC 29483
Sangaree
Residential

MLS# 18009982 / Active
3 br, 2 ba, 1508 sqft

LENDER APPROVED SHORT SALE at the terms in listing. Can CLOSE as soon as Buyers loan is ready. NO MORE WAIT. At this price lender will allow $4200 ... 

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$140,000
Provided courtesy of Coldwell Banker Residential Brokerage

287 Decatur Drive
Summerville, SC 29483
Cane Bay Plantation
Residential

MLS# 18009781 / Active
n/a br, 3 ba, 2379 sqft

This is a short sale with tenants in place until July 29 2018. 

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$229,000
Reduced -$16,000
Provided courtesy of Carolina One Real Estate

302 Houston Drive
Ladson, SC 29456
Briddleford Ridge
Residential

MLS# 18009645 / Active Contingent
3 br, 2 ba, 1402 sqft

Home is a complete renovation, handy-man super special. Roof is newer. Garage has been converted to two rooms. Nice large corner lot, large back... 

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$100,000
Provided courtesy of Home Solution Real Estate Services

406 Clarine Drive
Goose Creek, SC 29445
Boulder Bluff
Residential

MLS# 18009293 / Active Contingent
3 br, 1 ba, 1 half bath, 1037 sqft

This is a short sale. Home needs extensive work. Lots of items in back yard that need to be removed. It has a 3br/1.5 bath. 

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$80,000
Provided courtesy of Brand Name Real Estate

5504 Norwich Road
Adams Run, SC 29426
Residential

MLS# 18007825 / Active
3 br, 2 ba, 1600 sqft

House in need of repairs. Sold AS IS. 

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$85,000
Provided courtesy of Ysrael Properties

361 Camelot Drive
Goose Creek, SC 29445
Camelot Village
Residential

MLS# 18007260 / Active Contingent
3 br, 2 ba, 1402 sqft

This is a three bedroom 2 bath Handy Man Special can make a nice starter home with a good amount of living space and large bedrooms. Located in the... 

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$140,000
Provided courtesy of eXp Realty Charleston

2152 Summerwood Drive
Mount Pleasant, SC 29466
Planters Pointe
Residential

MLS# 18004970 / Active Contingent
4 br, 3 ba, 2435 sqft

Fantastic value in one of Mt. Pleasant's most sought-after neighborhoods. This 4-bedroom, 3 full bath home has 2435 square feet and a very desirab... 

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$389,000
Provided courtesy of Carolina One Real Estate

4187 Balmoral Court
North Charleston, SC 29418
Collins Park Villas
Residential

MLS# 18003055 / Active Contingent
2 br, 2 ba, 1 half bath, 1344 sqft

Come one, Come all. Investors, this won't last long! Just needs a little tlc to make a great rental. The 2 bedrooms are very spacious, very open... 

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$49,900
Provided courtesy of Coldwell Banker Residential Brokerage

8732 E Fairway Woods Circle
North Charleston, SC 29420
Coosaw Creek Country Club
Residential

MLS# 18002627 / Active
4 br, 3 ba, 1 half bath, 3294 sqft

4 bedroom & 3.5 Bedroom home w/Pool in gated Coosaw Creek Country Club. Great floor plan. Featuring Hardwood Floors thru out the downstairs and har... 

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$315,000
Reduced -$10,000
Provided courtesy of Carolina One Real Estate

108 Alan Court
Summerville, SC 29485
Greenhurst
Residential

MLS# 18000395 / Active Contingent
4 br, 1 ba, 1 half bath, 1138 sqft

Ton of potential with this 4 bedroom 2 bath home. Located in DD 2 school zone on a quite cul-de-sac. Large eat-in kitchen, huge fenced backyard, an... 

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$100,000
Provided courtesy of AgentOwned Premiere Group

423 Aberdeen Circle
Summerville, SC 29483
Scotts Mill
Residential

MLS# 18000373 / Active Contingent
4 br, 3 ba, 1 half bath, 2096 sqft

*** SHOWINGS BEGIN TUESDAY JANUARY 16TH*** Amazing and RARE opportunity to purchase this deeply discounted SHORT SALE. Located in the highly desira... 

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$169,900
Provided courtesy of ChuckTown Homes, LLC

7660 Blue House Lane
Edisto Island, SC 29438
Deepwater
Residential

MLS# 17033608 / Active
6 br, 3 ba, 2901 sqft

The Islands at Blue House - exquisite, ever changing views of wildlife, the creek, marsh,& N. Edisto from your classic lowcountry home nestled in a... 

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$850,000
Provided courtesy of Edisto Sales & Rentals Realty

316 Santee Drive
Santee, SC 29142
Santee Cooper Resort
Residential

MLS# 17032433 / Active
3 br, 2 ba, 1 half bath, 2376 sqft

Stunning home on a half acre lot that backs up right on the golf coarse. As soon as you enter your eyes will go directly to the large open floor pl... 

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$215,000
Reduced -$5,000
Provided courtesy of Realty ONE Group Coastal

322 Cabell Street
Charleston, SC 29407
Wappoo Shores
Residential

MLS# 17032204 / Active Contingent
3 br, 2 ba, 1930 sqft

Located in the heart of West Ashley, you will be minutes from schools, shopping, and restaurants. Walking in you are greeted by gorgeous hard wood ... 

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$300,000
Reduced -$25,000
Provided courtesy of RE/MAX Alliance

8035 Nova Court
North Charleston, SC 29420
Colony North
Residential

MLS# 17032199 / Active Contingent
4 br, 2 ba, 2069 sqft

Located in a great neighborhood. The house has a split floor plan with 3 bedrooms on 1 side and Master on the other. Previous listings stated the ... 

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$149,900
Reduced -$10,000
Provided courtesy of Coastalina Realty of Charleston

400 Lakeview Drive
Summerville, SC 29485
Ashborough
Residential

MLS# 17031354 / Active Contingent
5 br, 3 ba, 1 half bath, 3997 sqft

Rare 1+ac corner lot on tidal creek - house built on higher ground - no flood insurance required. Brick 5BR home with the space to entertain: Firep... 

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$360,000
Reduced -$30,000
Provided courtesy of Carolina One Real Estate

111 Red Rooster Circle
Moncks Corner, SC 29461
Residential

MLS# 17029182 / Active Contingent
4 br, 2 ba, 2112 sqft

Are you ready for a home in country that's still close to shopping, dining, entertainment, and the new Volvo site? Then this 4 bedroom, 2 bathroom ... 

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$70,000
Provided courtesy of Matt O'Neill Real Estate

14 Sandpiper Court
Isle Of Palms, SC 29451
Wild Dunes
Residential

MLS# 17029140 / Active
3 br, 2 ba, 1256 sqft

Located in the heart of Wild Dunes, you will be close to shopping, schools, restaurants, and minutes from the gorgeous IOP Beach. This is perfect f... 

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$565,000
Reduced -$10,000
Provided courtesy of RE/MAX Alliance

3094 Linksland Road
Mount Pleasant, SC 29466
Charleston National
Residential

MLS# 17029058 / Active Contingent
4 br, 2 ba, 1 half bath, 2398 sqft

MOTIVATED SELLERS - CHARLESTON NATIONAL GOLF COURSE VIEW!! This home is situated on the 9th tee box of the prestigious golf course of Charleston Na... 

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$370,000
Provided courtesy of Carolina One Real Estate
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Broker Reciprocity 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 Carolina One Real Estate 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 04-23-2018 5:08pm 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. Copyright 2018 Charleston Trident Multiple Listing Service, Inc. All rights reserved.
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