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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24 Photos 446 Doane Way Charleston, SC 29492

446 Doane Way
Charleston, SC 29492
Beresford Commons
Residential

MLS# 26018394 / Active
3 br, 2 ba, 1 Half Bath, 1260 Sqft

446 Doane Way is a residence with a functional layout and modern finishes throughout. The kitchen features a center island and a walk-in pantry, cr... 

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$350,000
Provided courtesy of Opendoor Brokerage, LLC
39 Photos 1328 Hermitage Avenue Charleston, SC 29412

1328 Hermitage Avenue
Charleston, SC 29412
Whitehouse Plantation
Residential

MLS# 26018393 / Active
3 br, 3 ba, 1 Half Bath, 1456 Sqft

Completely renovated from the studs out, this move-in ready 3-bedroom, 3-full-bath brick ranch offers the quality and peace of mind today`s buyers ... 

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$699,900
Provided courtesy of Bradley O'Mara Real Estate
12 Photos 145 Green Thistle Way Summerville, SC 29483

145 Green Thistle Way
Summerville, SC 29483
Dawson Pointe
Residential

MLS# 26018387 / Active
3 br, 2 ba, 1 Half Bath, 1930 Sqft

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

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$250,820
Provided courtesy of Lennar Sales Corp.
40 Photos 1113 N Shadow Drive Mount Pleasant, SC 29464

1113 N Shadow Drive
Mount Pleasant, SC 29464
Hickory Shadows
Residential

MLS# 26018385 / Active
3 br, 2 ba, 1460 Sqft

Newly renovated home in the heart of South Mount Pleasant, offered under $800K! Conveniently located with quick access to Coleman Boulevard and Hig... 

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$799,000
Provided courtesy of The Barry Company LLC
61 Photos 271 Decatur Drive Summerville, SC 29486

271 Decatur Drive
Summerville, SC 29486
Cane Bay Plantation
Residential

MLS# 26018381 / Active
4 br, 2 ba, 1 Half Bath, 2538 Sqft

Welcome to this beautifully maintained home in Old Rice Retreat, Cane Bay Plantation! Situated on a pond lot, this spacious 4-bedroom/2-bath home o... 

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$424,900
Provided courtesy of The Cassina Group
53 Photos 125 Akeley Lane Summerville, SC 29483

125 Akeley Lane
Summerville, SC 29483
Mallard Crossing
Residential

MLS# 26018377 / Active
5 br, 3 ba, 1 Half Bath, 2756 Sqft

Nestled in a desirable neighborhood, this impressive 2,756-square-foot home perfectly balances modern functionality with absolute comfort, offering... 

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$390,000
Provided courtesy of Carolina One Real Estate
11 Photos 272 Harvest Grove Lane Summerville, SC 29485

272 Harvest Grove Lane
Summerville, SC 29485
Limehouse Farms
Residential

MLS# 26018376 / Active
3 br, 2 ba, 1 Half Bath, 1906 Sqft

This ready to move in July brand new two-story townhome offers ample space to live and grow. An open-concept layout comprises the first level, comb... 

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$293,577
Provided courtesy of Lennar Sales Corp.
39 Photos 328 Grouse Park Charleston, SC 29414

328 Grouse Park
Charleston, SC 29414
Grand Oaks Townhomes
Residential

MLS# 26018374 / Active
3 br, 2 ba, 1 Half Bath, 1619 Sqft

From the moment you step onto the welcoming covered front porch, you`ll know you`re home. Uniquely designed for maximum privacy, this home is only ... 

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$479,000
Provided courtesy of Keller Williams Realty Charleston West Ashley
17 Photos 204 Chamblee Road Walterboro, SC 29488

204 Chamblee Road
Walterboro, SC 29488
Longleaf
Residential

MLS# 26018373 / Active
3 br, 2 ba, 1701 Sqft

Beautifully remodeled 3-bedroom, 2-bath, two-story home nestled among mature trees with exceptional curb appeal. Step inside to a stunning updated ... 

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$319,000
Provided courtesy of EXP Realty LLC
49 Photos 203 Balsam Circle Summerville, SC 29485

203 Balsam Circle
Summerville, SC 29485
Madison Ridge
Residential

MLS# 26018372 / Active
5 br, 3 ba, 1 Half Bath, 3054 Sqft

Welcome to this spacious and beautifully maintained 5-bed, 3.5-bath home in the desirable Madison Ridge community of Summerville. Offering over 3,0... 

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$466,500
Reduced -$2,500
Provided courtesy of ChuckTown Homes Powered By LPT Realty
11 Photos 274 Harvest Grove Lane Summerville, SC 29485

274 Harvest Grove Lane
Summerville, SC 29485
Limehouse Farms
Residential

MLS# 26018370 / Active
3 br, 2 ba, 1 Half Bath, 1906 Sqft

This ready to move in July brand new two-story townhome offers ample space to live and grow. An open-concept layout comprises the first level, comb... 

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$285,997
Provided courtesy of Lennar Sales Corp.
11 Photos 276 Harvest Grove Lane Summerville, SC 29485

276 Harvest Grove Lane
Summerville, SC 29485
Limehouse Farms
Residential

MLS# 26018368 / Active
3 br, 2 ba, 1 Half Bath, 1906 Sqft

This ready to move in July brand new two-story townhome offers ample space to live and grow. An open-concept layout comprises the first level, comb... 

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$292,577
Provided courtesy of Lennar Sales Corp.
15 Photos 100 Kimeran Lane UNIT D Summerville, SC 29485

100 Kimeran Lane UNIT D
Summerville, SC 29485
Countryside
Residential

MLS# 26018361 / Active
2 br, 1 ba, 1 Half Bath, 997 Sqft

Located in Summerville`s Countryside subdivision, this two-story townhouse offers 997 sq ft of living space with 2 bedrooms and 1.5 baths. The main... 

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$215,000
Provided courtesy of The Husted Team powered by Keller Williams
27 Photos 125 Sugarberry Way Summerville, SC 29485

125 Sugarberry Way
Summerville, SC 29485
Summers Corner
Residential

MLS# 26018360 / Active
3 br, 2 ba, 1 Half Bath, 1709 Sqft

Built by Stanley Martin, this beautifully maintained corner-lot home offers the perfect combination of quality craftsmanship, comfort, and location... 

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$428,900
Provided courtesy of homecoin.com
23 Photos
Open House: Today 12:00pm - 3:00pm
2805 Merriams Drive Charleston, SC 29414

2805 Merriams Drive
Charleston, SC 29414
Carolina Bay
Residential

MLS# 26018358 / Active
5 br, 3 ba, 1 Half Bath, 2952 Sqft

Experience the perfect blend of luxury, comfort, and Lowcountry charm in this exceptional 5-bedroom, 3.5-bathroom home offering 2,950 square feet o... 

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$997,000
Provided courtesy of Chosen Realty LLC
46 Photos
Open House: Today 1:00pm - 2:30pm
1053 Victoria Road Wando, SC 29492

1053 Victoria Road
Wando, SC 29492
Shellring At St Thomas Island
Residential

MLS# 26018355 / Active
5 br, 3 ba, 1 Half Bath, 2747 Sqft

Elevated coastal living meets modern luxury in this beautifully updated and newly painted home. Showcasing a bright, fully renovated kitchen with p... 

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$979,000
Provided courtesy of Carolina One Real Estate
45 Photos 2451 Draymohr Court Mount Pleasant, SC 29466

2451 Draymohr Court
Mount Pleasant, SC 29466
Park West
Residential

MLS# 26018349 / Active
4 br, 2 ba, 1 Half Bath, 2375 Sqft

Live the Mount Pleasant lifestyle in this turnkey & light-filled end-unit townhome just minutes from beaches, dining, and golf cart-friendly conven... 

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$669,000
Provided courtesy of The Boulevard Company
47 Photos
Open House: Sat Jul 11th, 11:00am - 1:00pm
5012 Cranesbill Way Johns Island, SC 29455

5012 Cranesbill Way
Johns Island, SC 29455
Sea Island Preserve
Residential

MLS# 26018348 / Active
4 br, 2 ba, 1 Half Bath, 2895 Sqft

Warm, airy and welcoming from the moment you walk in. Built in 2022, this thoughtfully designed home sits on a generous 0.37-acre lot and is ideal ... 

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$750,000
Provided courtesy of Carolina One Real Estate
46 Photos 228 Swallowtail Court Mount Pleasant, SC 29464

228 Swallowtail Court
Mount Pleasant, SC 29464
Tidal Walk
Residential

MLS# 26018347 / Active
4 br, 3 ba, 1 Half Bath, 3170 Sqft

Welcome home. A lovely 4BD/3.5BA home in Tidal Walk, ideally located off Long Point Rd near Belle Hall shopping, I-526, the airport, beaches, and D... 

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$949,900
Provided courtesy of Coldwell Banker Realty
41 Photos 8063 Jack Island Drive Johns Island, SC 29455

8063 Jack Island Drive
Johns Island, SC 29455
Kiawah River
Residential

MLS# 26018345 / Active
4 br, 3 ba, 1 Half Bath, 3322 Sqft

Quinessential Lowcountry home in Kiawah River, built by renowned Delpino Custom Homes. This home is perfectly situated beside dedicated green space... 

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$2,399,000
Provided courtesy of Akers Ellis Real Estate LLC
75 Photos 1463 Tomato Farm Circle Mount Pleasant, SC 29464

1463 Tomato Farm Circle
Mount Pleasant, SC 29464
Heirloom Landing
Residential

MLS# 26018344 / Active
5 br, 4 ba, 1 Half Bath, 3745 Sqft

Lowcountry living at its finest! Literally minutes from Sullivan`s Island, Old Village, Shem Creek & only a year NEW, this thoughtfully designed st... 

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$2,950,000
Provided courtesy of The Boulevard Company
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