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.
Modify Search Criteria
204 Barberry Street
Summerville, SC 29483
White Gables
Residential
MLS# 23025519 / Active
It's home sweet home in this spacious Lowcountry home adorned with quintessential double front porches! Nestled in the desirable, picturesque White...
Reduced -$15,000
111 Shelly Street
Bonneau, SC 29431
Residential
MLS# 23025484 / Active
Welcome to this unique property that offers versatility and flexibility to its future owner. Located in a peaceful residential neighborhood, this p...
Reduced -$1,000
1510 Old Rosebud Trail
Awendaw, SC 29429
Pepper Plantation
Residential
MLS# 23025465 / Active
Serene marsh views on the Wando River! This 3 acre, private retreat is located within the gated community of Pepper Plantation. Just a short drive ...
Reduced -$200,000
330 Concord Street UNIT Th 9
Charleston, SC 29401
Dockside
Residential
MLS# 23025391 / Active
Enjoy lock-and-leave living in downtown Charleston from this 2 bedroom, 2.5 bath townhouse in Dockside Condominiums. Access this unit from the comm...
Reduced -$19,000
46-A State Street UNIT & 15 Lodge Alley
Charleston, SC 29401
French Quarter
Residential
MLS# 23025354 / Active
This beautiful townhouse consists of 2 tax map parcels owned fee simple and sold as one. There is no regime fee. This early 19th-century State Stre...
4113 Buccaneer Road
Isle of Palms, SC 29451
Big Goat Island
Residential
MLS# 23025283 / Active
Island paradise located off the coast of Charleston, SC on the Atlantic Intracoastal Waterway, channel marker 116, just north of the Isle of Palms,...
Reduced -$323,000
1490 Old Rosebud Trail
Mount Pleasant, SC 29429
Pepper Plantation
Residential
MLS# 23025127 / Active
This gorgeous riverfront home is next to new! This luxury estate includes a main house and a guest cottage that sits on 2.5 acres of land with amaz...
Reduced -$100,001
2238 Catesbys Blf
Seabrook Island, SC 29455
Seabrook Island
Residential
MLS# 23025096 / Active
RARE OCEAN FRONT OPPORTUNITY! Spectacular ocean view from almost every room! Classic family beach house with four bedrooms, four and a half bathroo...
Merritt Road UNIT B-15
Charleston, SC 29407
The Slips At Ripley
Residential
MLS# 23025039 / Active
Least expensive slip for sale at Ripley Light Marina!!! 17.5' X 60' Boat slip at Ripley Marina. Slip B-15. Located within walking distance of Calif...
Reduced -$10,000
1069 Gallinule Court
Kiawah Island, SC 29455
Kiawah Island
Residential
MLS# 23024936 / Active
Fabulous 3 bedroom, 2 bathroom Sparrow Pond Cottage has been renovated and meticulously maintained throughout & features a multitude of upgrades in...
Reduced -$100,000
12 Townpark Lane UNIT C
Charleston, SC 29412
Lakeside
Residential
MLS# 23024867 / Active
Welcome home! Conveniently located near the many restaurants, shops, and entertainment of Maybank and Riverland Terrace! Just minutes from Downtown...
4401 Prices Bridge Lane
Walterboro, SC 29488
Horseshoe
Residential
MLS# 23024790 / Active
Spring into action to take advantage of this newly priced gem in the middle of a spacious lot extending to a small river on the outskirts of Walter...
Reduced -$27,500
8500 Palmetto Drive UNIT H102
Isle of Palms, SC 29451
Wild Dunes
Residential
MLS# 23024739 / Active
Lovely 2 bedroom 2 bath first floor oceanfront condominium in Tidewater Villas, nestled in the heart of Wild Dunes. Just steps from your backdoor a...
Reduced -$26,000
185 Wappoo Road
Charleston, SC 29407
Isle De Nemours
Residential
MLS# 23024653 / Active
This picturesque property with stunning views of the Stono River and marsh, consists of approximately 11 acres of land, with approx. 1.4 acres of h...
Reduced -$100,000
6397 Spring Grove Road
Adams Run, SC 29426
Residential
MLS# 23024639 / Active
Whether you're dreaming of a private home in the country, a family compound, or your next development, this property has plenty to offer, including...
Reduced -$10,000
3949 Bulow Landing Road
Ravenel, SC 29470
Poplar Grove
Residential
MLS# 23024624 / Active
Experience modern luxury in this exquisite 4-bedroom, 4.5-bath estate, a masterpiece by Arthur Rutenberg. This pristine home boasts a private pool ...
222 E Hudson Avenue
Folly Beach, SC 29439
Folly Beach
Residential
MLS# 23024617 / Active
HOME + LOT= Value add! This charming Folly Beach cottage has been renovated from top to bottom, keeping everything you love about Folly and bringin...
Reduced -$36,000
101 N Knightsbridge Court
Goose Creek, SC 29445
Crowfield Plantation
Residential
MLS# 23024603 / Active
Pride of ownership shows in this amazing, move-in ready home in the desirable Hamlet section of Crowfield Plantation. Upon entering you will be gre...
Reduced -$4,900
140 Flyway Drive
Kiawah Island, SC 29455
Kiawah Island
Residential
MLS# 23024562 / Active
Don't miss this unique opportunity to own an exquisite oceanfront estate on the pristine shores of Kiawah Island, complete with an exclusive Kiawah...
1104 St Pauls Parrish Lane
Johns Island, SC 29455
The Commons At Fenwick Hall
Residential
MLS# 23024502 / Active
MOTIVATED! This beautiful townhouse has been lovingly cared for and maintained. As you enter you are greeted by the hardwood floors and cozy feel. ...
Reduced -$5,000
117 Storey Road
Summerville, SC 29483
Twin Lakes
Residential
MLS# 23024441 / Active
Country living on 1/2 acre tucked away on a quiet road with the convenience of being right in Summerville. The seller just added a BRAND NEW BEAUTI...
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 05-14-2024 8:28 AM 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 2024 Charleston Trident Multiple Listing Service, Inc. All rights reserved.