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.

 

Modify Search Criteria
Displaying results 1-4 of 4
16 Photos 8528 Falling Leaf Lane Charleston, SC 29420

8528 Falling Leaf Lane
Charleston, SC 29420
Whitehall
Residential

MLS# 21028087 / Active
4 br, 2 ba, 1 Half Bath, 2303 Sqft

Centrally located house in Whitehall with nearby shopping and restaurants. Floor plan is ideal with master bedroom downstairs and lots of flex spa... 

More Details

$309,000
Provided courtesy of Carolina Elite Real Estate
8 Photos 102 Balmoral Circle Goose Creek, SC 29445

102 Balmoral Circle
Goose Creek, SC 29445
Braemoor
Residential

MLS# 21027544 / Active
3 br, 2 ba, 1345 Sqft

Great price on this 1 story home located in Braemoor subdivision in Goose Creek. Priced for an as-is quick sale, this is a great opportunity. This... 

More Details

$210,000
Provided courtesy of Coldwell Banker Realty
7 Photos 1661 Eider Down Drive Summerville, SC 29483

1661 Eider Down Drive
Summerville, SC 29483
Drakesborough
Residential

MLS# 20028838 / Active
4 br, 2 ba, 1 Half Bath, 2323 Sqft

This 4 bedroom 2 & 1/2 bath home is in a grand location close to the new industrial developments, just off I-26 near Jedburg. House need some TLC a... 

More Details

$285,000
Increase +$65,000
Provided courtesy of Harbins Two, Inc
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
Residential, Land, Other Disclaimer:

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 10-18-2021 3:06 PM 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.
Commercial Sale/Lease: Copyright 2021 South Carolina commercial MLS, Inc. All rights reserved. Last updated on 10-18-2021 3:06 PM EST est.

Any images related to data from the MLS is the sole property of the MLS and not the responsibility of the owner of this website.


This real estate website and IDX data is hosted by Dynamic IDX, LLC

Nat Wallen’s Charleston videos attract more customers.


Sell your home with the market leader.

Hey there, thanks for reaching out!
Are schools important to you?
When do you need us?
Your general price point?
Don’t worry... this is not set in stone :)
Want to add a note?
EXPLORE CHARLESTON ON YOUR OWN
Call: 843.708.4488