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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40 Photos
Open House: Today 12:00pm - 2:00pm
2467 Draymohr Court Mount Pleasant, SC 29466

2467 Draymohr Court
Mount Pleasant, SC 29466
Park West
Residential

MLS# 26018956 / Active
4 br, 2 ba, 1 Half Bath, 2422 Sqft

Must see! Beautifully maintained townhome in the highly desirable Keswick subsection of Park West. This 4B, 2.5B home boasts gorgeous LVP flooring ... 

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$665,900
Provided courtesy of Carolina One Real Estate
38 Photos 136 Airy Drive Summerville, SC 29486

136 Airy Drive
Summerville, SC 29486
Cane Bay Plantation
Residential

MLS# 26018955 / Active
4 br, 3 ba, 2354 Sqft

Beautifully upgraded ranch home offering 4-bedrooms, 3 bathrooms & 3 car garage. Thus home features functional living spaces, & exceptional communi... 

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$470,000
Provided courtesy of EXP Realty, LLC
45 Photos 165 Dandridge Road Walterboro, SC 29488

165 Dandridge Road
Walterboro, SC 29488
Hyde Park
Residential

MLS# 26018953 / Active
4 br, 2 ba, 1445 Sqft

***Ask about the possibility of receiving 1% reduction in interest rate and free refi.*** Welcome to Walterboro and this inviting ranch style home ... 

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$259,900
Provided courtesy of Matt O'Neill Real Estate
19 Photos 3546 Agape Court Ladson, SC 29456

3546 Agape Court
Ladson, SC 29456
Paddock Pointe
Residential

MLS# 26018952 / Active
3 br, 2 ba, 1601 Sqft

Welcome to 3546 Agape Court in the desirable Paddock Pointe community! This well-maintained, move-in ready, one-story home offers an inviting open ... 

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$340,000
Provided courtesy of The Boulevard Company
55 Photos
Open House: Today 9:00am - 12:00pm
201 Heatley Street Moncks Corner, SC 29461

201 Heatley Street
Moncks Corner, SC 29461
Residential

MLS# 26018949 / Active
3 br, 2 ba, 1310 Sqft

Looking for a move-in ready home with the perfect backyard? Welcome to 201 Heatley Street, Moncks Corner, SC! This newly upgraded, 1,310 sq. ft. pr... 

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$300,000
Provided courtesy of ChuckTown Homes Powered By LPT Realty
50 Photos 196 Sea Oats St Summerville, SC 29485

196 Sea Oats St
Summerville, SC 29485
Summers Corner
Residential

MLS# 26018948 / Active
5 br, 4 ba, 1 Half Bath, 3163 Sqft

The Calhoun- This Elevated beautiful, spacious, open concept home with 2 laundry hook ups! One for stackable washer and dryer in owners suite and t... 

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$592,560
Increase +$12,215
Provided courtesy of Lennar Sales Corp.
66 Photos 4550 Cape Island Drive Awendaw, SC 29429

4550 Cape Island Drive
Awendaw, SC 29429
Paradise Island
Residential

MLS# 26018947 / Active
4 br, 3 ba, 1 Half Bath, 3550 Sqft

Welcome Home to Paradise Island. Tucked beneath towering pines and surrounded by natural beauty, this custom-built retreat offers a rare blend of p... 

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$1,649,900
Provided courtesy of NextHome The Agency Group
1 Photos 129 Orchard Blossom Lane Summerville, SC 29485

129 Orchard Blossom Lane
Summerville, SC 29485
Limehouse Farms
Residential

MLS# 26018945 / Active
3 br, 2 ba, 1749 Sqft

The adorable Litchfield is a single story with an open layout. The front exterior is graced with a lovely front porch and the 2-car garage sits bac... 

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$414,000
Provided courtesy of Lennar Sales Corp.
50 Photos 1001 Scotch Bonnet Way Summerville, SC 29485

1001 Scotch Bonnet Way
Summerville, SC 29485
Summers Corner
Residential

MLS# 26018944 / Active
5 br, 4 ba, 1 Half Bath, 3163 Sqft

The Calhoun- Spacious, open concept home with 2 laundry hook ups! One for stackable washer and dryer in owners suite and the other more traditional... 

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$470,295
Reduced -$5,050
Provided courtesy of Lennar Sales Corp.
7 Photos 105 Ingleside Drive Summerville, SC 29486

105 Ingleside Drive
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 26018943 / Active
5 br, 4 ba, 1 Half Bath, 2827 Sqft

The Tradd is a beautiful Charleston Single with beautiful double porcches and a detached garage. The interior with 10` ceilings, features a foyer t... 

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$535,093
Reduced -$11,450
Provided courtesy of Lennar Sales Corp.
1 Photos 143 Green Thistle Way Summerville, SC 29483

143 Green Thistle Way
Summerville, SC 29483
Dawson Pointe
Residential

MLS# 26018940 / Active
3 br, 2 ba, 1 Half Bath, 1879 Sqft

Ready for move in. Welcome to Dawson Pointe, where modern townhome living meets the ease of condo ownership. This new two-story home features a mod... 

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$243,875
Provided courtesy of Lennar Sales Corp.
7 Photos 126 Green Thistle Way Summerville, SC 29483

126 Green Thistle Way
Summerville, SC 29483
Dawson Pointe
Residential

MLS# 26018938 / Active
3 br, 2 ba, 1 Half Bath, 1879 Sqft

Welcome to Dawson Pointe, where modern townhome living meets the ease of condo ownership. This new two-story home features a modern layout that max... 

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$270,845
Provided courtesy of Lennar Sales Corp.
1 Photos 139 Green Thistle Way Summerville, SC 29483

139 Green Thistle Way
Summerville, SC 29483
Dawson Pointe
Residential

MLS# 26018937 / Active
3 br, 2 ba, 1 Half Bath, 1879 Sqft

Ready for move in. Welcome to Dawson Pointe, where modern townhome living meets the ease of condo ownership. This new two-story home features a mod... 

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$243,220
Provided courtesy of Lennar Sales Corp.
15 Photos 206 Belfast Lane Walterboro, SC 29488

206 Belfast Lane
Walterboro, SC 29488
Ireland Ridge
Residential

MLS# 26018935 / Active
3 br, 2 ba, 1248 Sqft

Welcome to this beautifully renovated home nestled in the quiet neighborhood of Ireland Ridge, just minutes from downtown Walterboro. Conveniently ... 

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$174,500
Provided courtesy of Colleton Realty, LLC
26 Photos
Open House: Today 11:00am - 1:00pm
1700 Eider Down Drive Summerville, SC 29483

1700 Eider Down Drive
Summerville, SC 29483
Drakesborough
Residential

MLS# 26018934 / Active
3 br, 2 ba, 1 Half Bath, 1680 Sqft

Nestled in the highly desirable Drakesborough community, this beautifully maintained two-story home offers the perfect blend of comfort, efficiency... 

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$349,900
Provided courtesy of Jason Mitchell Group
16 Photos 160 Ireland Drive Summerville, SC 29486

160 Ireland Drive
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 26018933 / Active
3 br, 2 ba, 1921 Sqft

Welcome to Horizons, an exclusive 55+ gated active adult community situated in the highly desirable Carnes Crossroads masterplan. Residents enjoy l... 

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$414,432
Provided courtesy of Lennar Sales Corp.
16 Photos 116 Archers Bay Street Summerville, SC 29486

116 Archers Bay Street
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 26018932 / Active
3 br, 2 ba, 1921 Sqft

Welcome to Horizons, an exclusive 55+ gated active adult community situated in the highly desirable Carnes Crossroads masterplan. Residents enjoy l... 

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$400,745
Provided courtesy of Lennar Sales Corp.
43 Photos 120 Lilac Grv Way Summerville, SC 29486

120 Lilac Grv Way
Summerville, SC 29486
Sheep Island
Residential

MLS# 26018931 / Active
4 br, 3 ba, 3129 Sqft

Near Nexton Living | Private Conservation Lot Home with Resort-Style Amenities + Amazing IncentivesOne of the final opportunities to build the soug... 

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$649,280
Provided courtesy of D R Horton Inc
5 Photos 158 Ireland Drive Summerville, SC 29486

158 Ireland Drive
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 26018930 / Active
4 br, 2 ba, 1 Half Bath, 2225 Sqft

Welcome to Horizons, an exclusive 55+ gated active adult community situated in the highly desirable Carnes Crossroads masterplan. Residents enjoy l... 

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$393,223
Provided courtesy of Lennar Sales Corp.
6 Photos 109 Ingleside Drive Summerville, SC 29486

109 Ingleside Drive
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 26018929 / Active
5 br, 4 ba, 1 Half Bath, 2827 Sqft

The Tradd is a beautiful Charleston Single with a detached garage. The interior with 10` ceilings, features a foyer that opens into a lovely dining... 

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$527,202
Reduced -$11,250
Provided courtesy of Lennar Sales Corp.
16 Photos 115 Beamon Loop Summerville, SC 29486

115 Beamon Loop
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 26018928 / Active
4 br, 4 ba, 2610 Sqft

The Jackson is a lovely two-story home with front porch where you`ll find a bright and airy foyer inside, a guest bedroom or study, full bath and l... 

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$583,600
Provided courtesy of Lennar Sales Corp.
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