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
108 Green Grass Road
Summerville, SC 29483
The Ponds
Residential
Move-in-ready and meticulously maintained! This 5 Bedroom home has space for everyone. Highlights include: Open floor plan, first floor bedroom sui...
703 Mountain Pine Road
Moncks Corner, SC 29461
Conifer Hall
Residential
: Wonderful open floorplan home that won't last long. Bright, open Livingroom with a fireplace that opens to the kitchen. Perfect area for entertai...
226 Sea Cloud Circle UNIT #226
Edisto Island, SC 29438
Wyndham Ocean Ridge
Residential
Rare opportunity to own a spacious 2-bedroom, 2 bath, fully furnished Villa overlooking #7 Tee box in Ocean Ridge Resort. Primary Bedroom offers it...
1174 Stokes Road
Walterboro, SC 29488
Residential
This Home has been Updated and Looks Great. You will LOVE All the Details this Home has to Offer Especially all the Useable Space it Provides with ...
226 Claret Cup Way
Charleston, SC 29414
Verdier Pointe
Residential
PLANNED COMPLETION EARLY 2025. DESIGN CHOICES CAN STILL BE MADE! The Luca Plan offers a versatile open layout with a large kitchen island, separate...
4269 Jacobs Pt Court
Ravenel, SC 29470
Jacobs Point
Residential
If you are looking for peace and serenity...You've found your home! This is paradise situated on 1.63 acres, overlooking the marsh and Wallace Cree...
1128 Stokes Road
Walterboro, SC 29488
Residential
NEW INVITING LOOK! TURNKEY CONDITION!! Enter into a OPEN Living Room that flows right into the Eat-in Kitchen, that is complete with White Cabinets...
34 Fairway Dunes Lane
Isle of Palms, SC 29451
Wild Dunes
Residential
Beautifully UPDATED, fully furnished, 3 bedroom, 3 bath townhome on the Links Golf Course in the gated resort community of Wild Dunes. This section...
1923 Kerry Street
North Charleston, SC 29406
Ferndale
Residential
Renovated home centrally located in North Charleston near Park Circle. Upgrades include a new roof, new hvac system, new drywall, new tile flooring...
153 Ivory Shadow Road
Summerville, SC 29486
Cane Bay Plantation
Residential
Pine Hills in Cane Bay, Summerville, South Carolina, offers a serene suburban lifestyle. Nestled amidst lush landscapes, it features elegant homes,...
168 Donning Drive
Summerville, SC 29483
The Ponds
Residential
Welcome to 168 Donning Drive, located in the highly sought after Ponds community of Summerville! This Charleston style home is situated among tall ...
1109 Studdingsail Lane
Charleston, SC 29412
The Cove at Folly
Residential
Outstanding views are yours with this elevated coastal townhome overlooking Folly Creek and surrounding marsh. Slow down and take in the golden sun...
402 Verbena Avenue
Summerville, SC 29483
White Gables
Residential
Welcome to a charming two story move-in ready Charleston Southern style home. The front porch is an inviting place to relax. Stepping into the foye...
109 Chatfield Circle
Goose Creek, SC 29445
Crowfield Plantation
Residential
Welcome to this charming home with a cozy fireplace, set in a serene natural color palette. The spacious layout offers flexibility with additional ...
3180 Landing Parkway
Charleston, SC 29420
Appian Landing
Residential
Welcome to your Dream oasis featuring a shimmering gunite pool, complete with a cabana area, tanning patio, and garden! Nestled in the desirable ne...
9981 Winged Elm Street
Ladson, SC 29456
Coosaw Preserve
Residential
Situated within the highly sought-after Dorchester District 2 school system and Coosaw Preserve you'll find this meticulously maintained home, load...
930 Holly Court
Hanahan, SC 29410
Gold Cup Springs
Residential
Step into this charming home and be greeted by beautiful hardwood floors that flow seamlessly through the living room, hallway, and all four bedroo...
4018 Stockbridge Drive
Charleston, SC 29414
Village Green
Residential
This beautiful 4 bedroom 2.5 bath home in West Ashley's desirable Village Green is awaiting your discovery! New roof in 2023! This majestic home wi...
1201 Francis Marion Circle
Moncks Corner, SC 29461
Stony Landing
Residential
Classic two story home located in the heart of Moncks Corner only minutes to shopping and dining. Only 3 miles to William Dennis Boat Landing on th...
3379 Cypress Pond Road
Walterboro, SC 29488
Residential
7848 Montview Road
North Charleston, SC 29418
The Park At Rivers Edge
Residential
Welcome home to 7848 Montview Road, a beautifully updated end-unit townhome nestled in the sought-after gated community of The Parks at River's Edg...