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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7 Driftwood Lane
Isle of Palms, SC 29451
Residential
MLS# 23023694 / Active
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Charleston, SC 29401
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Awendaw, SC 29429
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MLS# 23023582 / Active
Welcome to 4929 N. Highway 17, a charming and elegant residence nestled in the picturesque town of Awendaw, South Carolina. This stunning property ...
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MLS# 23023446 / Active
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209 Black Street
Walterboro, SC 29488
Residential
MLS# 23023382 / Active
This diamond in the rough is located in Historic Downtown Walterboro. The home sits on a large 0.71 acre lot, has a spacious back yard, full front ...
Reduced -$6,000
1880 Andell Bluff Boulevard UNIT C-5
Seabrook Island, SC 29455
Residential
MLS# 23023309 / Active
With an excellent location on C dock, this 35 foot slip has a 15% overhand and can accommodate up to a 38 foot boat. C dock is close to the action ...
Reduced -$15,100
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Kiawah Island, SC 29455
Kiawah Island
Residential
MLS# 23023304 / Active
Set on the most substantial and secluded homesite in Cypress Point, boasting .66 of an acre, 3,965 total (2,798 sf in MAIN home and 1,167 sf in GUE...
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5278 Mulholland Drive
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MLS# 23023278 / Active
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Reduced -$11,050
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MLS# 23023243 / Active
Would you like to own your own brand-new home but need a little help with the down payment? At Bermuda Pointe Towns, there's UP TO 50K IN DOWN PAYM...
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Reduced -$9,800
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Moncks Corner, SC 29461
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MLS# 23023046 / Active
INCENTIVE!!! (TIED TO PREFERRED LENDER / ATTORNEY) SPEND $35,000 IN UPGRADED OPTIONS: RECEIVE $20,000 OFF & $5K IN CLOSING COSTS. PLUS THROUGH END ...
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INCENTIVE!!! (TIED TO PREFERRED LENDER / ATTORNEY) SPEND $35,000 IN UPGRADED OPTIONS: RECEIVE $20,000 OFF & $5K IN CLOSING COSTS. PLUS THROUGH END ...
6 Eagleview Drive
Moncks Corner, SC 29461
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MLS# 23023044 / Active
INCENTIVE!!! (TIED TO PREFERRED LENDER / ATTORNEY) SPEND $35,000 IN UPGRADED OPTIONS: RECEIVE $20,000 OFF & $5K IN CLOSING COSTS. PLUS THROUGH END ...
4 Eagleview Drive
Moncks Corner, SC 29461
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Residential
MLS# 23023042 / Active
INCENTIVE!!! (TIED TO PREFERRED LENDER / ATTORNEY) SPEND $35,000 IN UPGRADED OPTIONS: RECEIVE $20,000 OFF & $5K IN CLOSING COSTS. PLUS THROUGH END ...
7 Eagleview Drive
Moncks Corner, SC 29461
Foxbank Plantation
Residential
MLS# 23023041 / Active
INCENTIVE!!! (TIED TO PREFERRED LENDER / ATTORNEY) SPEND $35,000 IN UPGRADED OPTIONS: RECEIVE $20,000 OFF & $5K IN CLOSING COSTS. PLUS THROUGH END ...
5 Eagleview Drive
Moncks Corner, SC 29461
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Residential
MLS# 23023040 / Active
INCENTIVE!!! (TIED TO PREFERRED LENDER / ATTORNEY) SPEND $35,000 IN UPGRADED OPTIONS: RECEIVE $20,000 OFF & $5K IN CLOSING COSTS. PLUS THROUGH END ...
3 Eagleview Drive
Moncks Corner, SC 29461
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Residential
MLS# 23023039 / Active
INCENTIVE!!! (TIED TO PREFERRED LENDER / ATTORNEY) SPEND $35,000 IN UPGRADED OPTIONS: RECEIVE $20,000 OFF & $5K IN CLOSING COSTS. PLUS THROUGH END ...
303 Elizabeth Street
Walterboro, SC 29488
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130 River Landing Drive UNIT #7212
Charleston, SC 29492
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MLS# 23023028 / Active
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Reduced -$5,900
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