While many lenders will have varying requirements and may demand that a borrower submit different types of documentation, the following should be treated as a guideline of what is required in a pursuing a short sale.

Contact Your Lender Immediately: 

You need to make the effort to find the right person responsible for handling a potential short sale. You want to talk to person in charge of loss mitigation for the lender, you want a supervisor's name, the name of the individual capable of making these kinds of decisions.

Submit a Letter of Authorization: 

Your lenders will not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent, closing agent, Title Company or lawyer, you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. You should include the following information: name, address, loan number, third party agents involved and contact information on both the agents and yourself.

A Preliminary Estimate of Your Lenders Proceeds: 

A preliminary HUD-1 settlement statement that indicates the sales price you are under contract for and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any. Your third party agent (realtor, title company or lawyer) should be able to prepare this for you. The bottom line should not indicate any net proceed to the seller.

Your Circumstances, In The Form of a Hardship Letter: 

A complete description of the facts that brought you to financially challenging situation and why you have a valid reason for the lender to accept less than full payment. Lenders can understand many circumstances are unavoidable, loss of job, death, divorce, etc., but they are not very compassionate to situations involving dishonesty, misrepresentation or criminal (or criminally negligent) behavior.

A Complete Financial Statement: 

Be truthful about your current financial situation and disclose your assets and liabilities. Provide information on savings accounts, money market accounts, stocks or bonds, cash, real estate or anything of tangible value. Your lender will need to be assured that you cannot pay back any shortfall in the short sale transaction.

Proof of Valuation: 

Many homeowners caught by the current downturn of the real estate market have lost significant equity in their home. This should be part and parcel as to why you cannot sell your home for enough to pay off the existing lien. You need to substantiate this value to the lender through a proof of valuation. In declining value to the lender you could present a fully completed appraisal, a comparative market analysis (CMA) or a broker’s opinion of value.

Your Purchase Agreement and Listing Agreement: 

The lender should want a copy of the executed offer, along with a copy of your listing agreement. Be prepared for the lender to renegotiate commissions and to refuse to allow payment of certain items such as home protection plans or seller concessions inspections.

If your package is complete, the facts are accurate and the circumstances speak for themselves, the lender will approve your short sale. Within the ongoing communications and negotiations, you should ask that the lender not report any adverse credit references to the credit reporting agencies, although they would be under no obligation to accommodate this request.

 

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66 Photos 2068 Ashburton Way Mount Pleasant, SC 29466

2068 Ashburton Way
Mount Pleasant, SC 29466
Park West
Residential

MLS# 21018923 / Active
6 br, 4 ba, 1 Half Bath, 4859 Sqft

Waterfront on Toomer Creek with Beautiful Views! Golf Course across the Marsh enhances the View and Privacy in this Serene Location. Wando River i... 

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$1,549,900
Reduced -$50,100
Provided courtesy of Carolina One Real Estate
84 Photos 3080 Marshgate Drive Seabrook Island, SC 29455

3080 Marshgate Drive
Seabrook Island, SC 29455
Seabrook Island
Residential

MLS# 21018006 / Active
4 br, 4 ba, 1 Half Bath, 3303 Sqft

Gorgeous marsh front location! Spacious five bedroom, four and a half bath home on desirable Marshgate Dr. Fantastic outdoor spaces, large wrap a... 

More Details

$959,000
Provided courtesy of Seabrook Island Real Estate
21 Photos 120 Tranquil Lane Ladson, SC 29456

120 Tranquil Lane
Ladson, SC 29456
Tranquil Acres
Residential

MLS# 21007869 / Active
3 br, 2 ba, 1250 Sqft

Single Family Ranch Home in need of a TLC. Great investment opportunity. This three bedroom, two bath home is in the Dorchester II school district ... 

More Details

$157,000
Provided courtesy of The Boulevard Company, LLC
20 Photos 6125 Maybank Highway Wadmalaw Island, SC 29487

6125 Maybank Highway
Wadmalaw Island, SC 29487
Wadmalaw Island
Residential

MLS# 19001554 / Active
4 br, 3 ba, 3008 Sqft

Handy man special. Home is vacant and in need of updating and repairs. There is a separate mother-in-law suite at the far right end of the home. ... 

More Details

$300,000
Increase +$100,000
Provided courtesy of Carolina One Real Estate
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Broker Reciprocity The data relating to real estate for sale on this web site comes in part from the Broker ReciprocitySM Program of the Charleston Trident Multiple Listing Service. Real estate listings held by brokerage firms other than Carolina One Real Estate are marked with the Broker ReciprocitySM logo or the Broker ReciprocitySM thumbnail logo (a little black house) and detailed information about them includes the name of the listing brokers. Last updated on 08-01-2021 9:02 AM EST . The broker providing these data believes them to be correct, but advises interested parties to confirm them before relying on them in a purchase decision. Copyright 2021 Charleston Trident Multiple Listing Service, Inc. All rights reserved.
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