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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5 Photos 162 Ireland Drive Summerville, SC 29486

162 Ireland Drive
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 26019643 / 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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$408,382
Provided courtesy of Lennar Sales Corp.
5 Photos 234 D Captain Kidd Court Summerville, SC 29486

234 D Captain Kidd Court
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 26019642 / Active
2 br, 2 ba, 1310 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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$293,725
Provided courtesy of Lennar Sales Corp.
35 Photos 235 Sweet Cherry Lane Summerville, SC 29486

235 Sweet Cherry Lane
Summerville, SC 29486
Shell Pointe At Cobblestone Village
Residential

MLS# 26019640 / Active
4 br, 2 ba, 1 Half Bath, 2174 Sqft

Welcome to 235 Sweet Cherry Lane in Shell Pointe at Cobblestone Village. Built in 2022, this 4-bedroom, 2.5 Bath home offers 2,174 sqft. of comfort... 

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$379,900
Provided courtesy of NextHome The Agency Group
40 Photos 122 Tyger Street Summerville, SC 29485

122 Tyger Street
Summerville, SC 29485
Lakes Of Summerville
Residential

MLS# 26019639 / Active
3 br, 2 ba, 2 Half Bath, 1241 Sqft

Welcome home to this beautifully maintained 3-bedroom, 2-bath ranch in desirable Lakes of Summerville! The open floor plan features a spacious fami... 

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$325,000
Provided courtesy of ChuckTown Homes Powered By LPT Realty
28 Photos 2030 Robin Wood Boulevard Moncks Corner, SC 29461

2030 Robin Wood Boulevard
Moncks Corner, SC 29461
Oak Hill Plantation
Residential

MLS# 26019638 / Active
4 br, 2 ba, 1 Half Bath, 2628 Sqft

Welcome to 2030 Robin Wood Drive in Oak Hill Plantation. This spacious 2,628 sqft. home offers four spacious bedrooms, two and a half bathrooms, a ... 

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$341,650
Provided courtesy of NextHome The Agency Group
64 Photos 95 Gordon Street Charleston, SC 29403

95 Gordon Street
Charleston, SC 29403
Wagener Terrace
Residential

MLS# 26019637 / Active
4 br, 3 ba, 1 Half Bath, 1998 Sqft

2,617 Total SqFt with 1,998 SqFt in main house plus 618 SqFt in ADU. Welcome to 95 Gordon Street, a beautifully updated 4-bedroom, 3.5-bathroom hom... 

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$1,399,000
Provided courtesy of Carolina One Real Estate
54 Photos 402 Parish Farms Drive Summerville, SC 29486

402 Parish Farms Drive
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 26019636 / Active
3 br, 2 ba, 1 Half Bath, 2444 Sqft

Welcome to 402 Parish Farms Drive, a move-in ready home in the highly sought-after Carnes Crossroads community. Thoughtful updates, including fresh... 

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$525,000
Provided courtesy of Carolina One Real Estate
68 Photos 1216 Old Towne Road Charleston, SC 29407

1216 Old Towne Road
Charleston, SC 29407
Wespanee Plantation
Residential

MLS# 26019633 / Active
5 br, 3 ba, 1 Half Bath, 2872 Sqft

Welcome to 1216 Old Towne Road, a brand-new construction home on a rare .43-acre private lot just minutes from Downtown Charleston. Builder warrant... 

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$1,150,000
Provided courtesy of Carolina One Real Estate
28 Photos 335 Spruce Ivy Street Moncks Corner, SC 29461

335 Spruce Ivy Street
Moncks Corner, SC 29461
Stone Ridge
Residential

MLS# 26019632 / Active
4 br, 2 ba, 1765 Sqft

Welcome to this beautifully appointed Cali floorplan in the highly desirable Stone Ridge community, where modern elegance meets comfortable Lowcoun... 

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$360,000
Provided courtesy of RE/MAX Cornerstone Realty
38 Photos 311 Hillman Trail Drive Moncks Corner, SC 29461

311 Hillman Trail Drive
Moncks Corner, SC 29461
Foxbank Plantation
Residential

MLS# 26019631 / Active
4 br, 2 ba, 1 Half Bath, 2648 Sqft

Beautiful 4-bedroom, 2.5-bath home located in the newer section of Foxbank, featuring the the primary suite conveniently located on the main level!... 

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$469,900
Provided courtesy of Synergy Group Properties
24 Photos 1096 Refuge Way Summerton, SC 29148

1096 Refuge Way
Summerton, SC 29148
Residential

MLS# 26019630 / Active
3 br, 2 ba, 1196 Sqft

Welcome to this beautifully designed 3 bedroom, 2 bathroom home offering 1,196 square feet of thoughtfully planned living space on a generous .36 a... 

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$300,000
Provided courtesy of Beach Residential
75 Photos 78 King Charles Circle Summerville, SC 29485

78 King Charles Circle
Summerville, SC 29485
Newington Plantation
Residential

MLS# 26019628 / Active
4 br, 2 ba, 1 Half Bath, 2350 Sqft

Located in the well-established Newington Plantation neighborhood, 78 King Charles Circle is a traditional two-story home set on a spacious, fenced... 

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$540,000
Provided courtesy of The Boulevard Company
43 Photos 1300 Park West Boulevard UNIT #611 Mount Pleasant, SC 29466

1300 Park West Boulevard UNIT #611
Mount Pleasant, SC 29466
Park West
Residential

MLS# 26019627 / Active
2 br, 1 ba, 1026 Sqft

RENOVATED & MOVE-IN READY! Beautifully updated 2-bedroom, 1-bathroom 2nd floor condo with a 1 CAR GARAGE in the gated community of Madison at Park ... 

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$369,900
Provided courtesy of Brand Name Real Estate
23 Photos 1113 Santa Elena Way Johns Island, SC 29455

1113 Santa Elena Way
Johns Island, SC 29455
Fenwick Commons
Residential

MLS# 26019620 / Active
2 br, 2 ba, 1 Half Bath, 1580 Sqft

1113 Santa Elena Way is the location you`ve been waiting for! Just steps from the neighborhood pool, minutes from the shopping and dining along May... 

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$390,000
Provided courtesy of Carolina One Real Estate
5 Photos 234 C Captain Kidd Court Summerville, SC 29486

234 C Captain Kidd Court
Summerville, SC 29486
Carnes Crossroads
Residential

MLS# 26019618 / Active
3 br, 3 ba, 1864 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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$331,540
Provided courtesy of Lennar Sales Corp.
38 Photos 2140 Kings Gate Lane Mount Pleasant, SC 29466

2140 Kings Gate Lane
Mount Pleasant, SC 29466
Dunes West
Residential

MLS# 26019617 / Active
3 br, 2 ba, 1397 Sqft

Dual primary bedrooms! Downstairs bedroom is attached to full-bath or use one of the 2 upstairs bedrooms as the primary bedroom. Newer flooring & N... 

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$415,000
Provided courtesy of Beach Residential
8 Photos 256 Cloverleaf Acres Lane Summerville, SC 29486

256 Cloverleaf Acres Lane
Summerville, SC 29486
The Crossing at St. James
Residential

MLS# 26019615 / Active
3 br, 2 ba, 1 Half Bath, 1702 Sqft

Charming Charleston-Inspired Townhome Near Summerville & CharlestonWelcome home to 256 Cloverleaf Acres Lane, located in The Crossing at St. James,... 

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$363,905
Provided courtesy of D R Horton Inc
32 Photos 1217 N University Drive UNIT Unit A Ladson, SC 29456

1217 N University Drive UNIT Unit A
Ladson, SC 29456
Creekside Village
Residential

MLS# 26019613 / Active
3 br, 2 ba, 1233 Sqft

Great Location! 3 bed 2 bath duplex with one car garage. Kitchen with breakfast bar open to dining and family room. Spacious master bedroom with tr... 

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$279,000
Provided courtesy of AgentOwned Realty Charleston Group
41 Photos 4006 Crown Pointe Street Charleston, SC 29492

4006 Crown Pointe Street
Charleston, SC 29492
Daniel Island
Residential

MLS# 26019612 / Active
4 br, 2 ba, 2144 Sqft

Welcome Home to Daniel Island!Meticulously maintained and extensively upgraded, this beautiful home is nestled in the highly desirable Center Park ... 

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$1,299,000
Provided courtesy of Keller Williams Preferred
35 Photos 3362 Berryhill Road Johns Island, SC 29455

3362 Berryhill Road
Johns Island, SC 29455
Cedar Springs
Residential

MLS# 26019610 / Active
3 br, 2 ba, 1 Half Bath, 1614 Sqft

Welcome to 3362 Berryhill Road, where comfort, convenience, and Lowcountry living come together in the Cedar Springs community on Johns Island - wi... 

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$515,000
Provided courtesy of Akers Ellis Real Estate LLC
51 Photos 1402 Camp Road UNIT 3f Charleston, SC 29412

1402 Camp Road UNIT 3f
Charleston, SC 29412
Point James
Residential

MLS# 26019608 / Active
2 br, 2 ba, 959 Sqft

Don`t miss this beautifully remodeled 2BR/2BA home in the heart of James Island! Recent updates include luxury vinyl plank flooring throughout, fre... 

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$254,900
Provided courtesy of Keller Williams Realty Charleston West Ashley
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