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
130 River Landing Drive
Charleston, SC 29492
This is an Outstanding SHORT SALE Opportunity to Purchase a Move-in Ready 3BR/2BA End Unit Condo in the Popular Community of Daniels Landing on Dan...
136 Netherfield Drive
Summerville, SC 29486
*** SHORTSALE***This home is on QUIET CUL-DE-SAC with HUGE Corner lot and fully FENCED back yard in SUMMERVILLE. The the home boasts 4 bedrooms an...
130 River Landing Drive
Charleston, SC 29492
** NEW PRICING ** THIS UNIT/BUILDING HAS MARSH VIEWS SO MAKE SURE TO PAY ATTENTION CLOSELY! ESPECIALLY WITH OUR ATTRACTIVE ASKING PRICE! IT'S AN ...
2435 Woodstock Avenue
North Charleston, SC 29406
This beautiful 2 bedroom, 1 Full and 1 Half bath END-UNIT townhouse on a cul-de-sac in Northwoods Villas is conveniently located to shopping, resta...
1906 Park Rd
Moncks Corner, SC 29461
**Amazing opportunity** This unique 6 bedroom, 4 bathroom home is nestled on a large 0.76-acre lot in the quiet and historic neighborhood of Pimli...
113 Bradd Street
Summerville, SC 29483
This home is in a great location! Close to Dorchester 2 schools, shopping and more! It is an as is sale, short sale so it will take some time to cl...
2229 Asheford Drive
Charleston, SC 29414
Asheford Place At Canterbury Woods
Located in Canterbury Woods, you will be close to schools, shopping, and restaurants! Walking in you are greeted by hardwood floors, vaulted ceilin...
710 Rutledge Avenue
Charleston, SC 29403
Prime Location! Dowtown Charleston minutes from MUSC, Roper,The Citadel, Hampton Park, shopping, and the beaches. Home needs some work but has a l...
5886 Ryans Bluff Road
North Charleston, SC 29418
3 bedroom, 3 bathroom, 1 story home. Spacious eat-in kitchen with breakfast bar, walk-in pantry and wet bar. LARGE formal dining room and family...
164 Palm Cove Way
Mount Pleasant, SC 29466
This exquisitely upgraded townhome, located in the exclusive Dunes West gated community has MARSH VIEWS from nearly every window making it a privat...
7660 Blue House Lane
Edisto Island, SC 29438
Blue House Plantation
The Islands at Blue House - exquisite, ever changing views of wildlife, the creek, marsh,& N. Edisto from your classic lowcountry home nestled in a...
2465 The Haul Over
Johns Island, SC 29455
Easy to show! Home needs updates, but in a great location in Seabrook Island. Back porch looks over an Egret estuary and has views of the golf cour...
5208 Mulholland Drive
Summerville, SC 29485
***APPROVED SHORT SALE PRICE***Priced $20k under recent appraisal!! Great home in the desirable Birkdale subsection of Wescott Plantation. As you e...
2945 Cathedral Lane
Charleston, SC 29414
Old Towne Villas
End unit Townhome located just off of the golf course. Home is conveniently located near hospitals, West Ashley High School, restaurants, grocery s...
7144 Sweet Grass Boulevard
Hanahan, SC 29410
Very nice 3 BR 2.5 bath home in the highly sought after Hanahan area. Larger open floorplan perfect for the growing family. Large MBR with separa...
5804 Palmetto Drive
Isle Of Palms, SC 29451
PRE-APPROVED SHORT SALE! !!!FURNISHED END UNIT WITH GREAT RENTAL HISTORY. THERE IS A WRAP AROUND PRIVATE BALCONY THAT HAS VIEWS OF THE POND AND CO...