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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248 Walters Road
Holly Hill, SC 29059
Evergreen
Residential
MLS# 23026916 / Active
Limited time up to $25k finance incentive with builder's preferred lender and attorney. Move In Ready! Spacious .3-acre lot with ample space betwee...
Increase +$2,505
119 Stono Circle
Santee, SC 29142
Center Pointe
Residential
MLS# 23026856 / Active
Limited time up to $21k finance incentive with builder's preferred lender and attorney. Ready Now! This homesite offers a golf course view! Welcome...
634 Rutledge Avenue
Charleston, SC 29403
Residential
MLS# 23026854 / Active
Investor special! 2 units (up/ down) with 2 water and electric meters. Downstairs has 4 bedrooms and 2 baths. Living room, dining room and kitchen....
147 Congaree Court
Santee, SC 29142
Center Pointe
Residential
MLS# 23026852 / Active
Limited time up to $21k finance incentive with builder's preferred lender and attorney.Center Pointe is conveniently located in the heart of Santee...
Reduced -$100,000
123 Stono Circle
Santee, SC 29142
Center Pointe
Residential
MLS# 23026850 / Active
Limited time up to $22k finance incentive with builder's preferred lender and attorney. Ready Now! This homesite is back-to-back with an adjacent h...
Increase +$2,645
110 Stono Circle
Santee, SC 29142
Center Pointe
Residential
MLS# 23026849 / Active
Limited time up to $22k finance incentive with builder's preferred lender and attorney. Ready Now! This homesite features a private lot with wooded...
Increase +$2,645
149 Congaree Court
Santee, SC 29142
Center Pointe
Residential
MLS# 23026845 / Active
Limited time up to $22k finance incentive with builder's preferred lender and attorney.Ready Now! This homesite offers an oversized lot and is in a...
Increase +$2,645
131 Congaree Court
Santee, SC 29142
Center Pointe
Residential
MLS# 23026832 / Active
Limited time up to $21k finance incentive with builder's preferred lender and attorney. Ready Now! Welcome to single-story living at its best! This...
Reduced -$14,427
29 Broad Street UNIT C
Charleston, SC 29401
South Of Broad
Residential
MLS# 23026828 / Active
Imagine owning a piece of Charleston history, a seldom-seen opportunity to purchase a portion of the historic McCauley Davis Building. Sitting amid...
Reduced -$300,000
210 Iris Drive
Walterboro, SC 29488
Hyde Park
Residential
MLS# 23026825 / Active
New listing in Walterboro that you don't want to miss! This 3 bedroom 2 bathroom home has a beautiful open kitchen with a large island that would m...
5747 Chatham Avenue
Hanahan, SC 29410
Charleston Farms
Residential
MLS# 23026812 / Active
Enjoy the tremendous value of this home for years to come! New HVAC, Plumbing and Drain lines, Windows, Updated Electrical, Countertops, Cabinets a...
Reduced -$7,000
81 Sandbar Lane UNIT #23
Folly Beach, SC 29439
Turtle Bay
Residential
MLS# 23026790 / Active
Welcome 23 Turtle Bay, a wonderful townhome with RIVER VIEWS and a DEEP WATER BOAT LIFT on the Folly River! Located in the highly desirable Turtle ...
2131 S Live Oak Drive
Moncks Corner, SC 29461
Highways 17-a / Old 52 / New 52
Residential
MLS# 23026677 / Active
Potential gem! A perfect investment. This property has a total of 3 lots sitting on 1.43 acres and has approximately 214 feet of S Live Oak Dr/High...
200 River Landing Drive UNIT 206h
Charleston, SC 29492
200 River Landing Dr
Residential
MLS# 23026630 / Active
Welcome to H206 RLD a beautiful condo overlooking the beautiful low country marshes. This property has been meticulously maintained and offers an o...
1466 Tangles Trail
Charleston, SC 29492
Oak Bluff
Residential
MLS# 23026626 / Active
Build your own Drive Under home! Fall in love with the Bryce plan! This Charleston-charmed gem features double front porches for relaxation. The ow...
Increase +$591
190 Coming Street
Charleston, SC 29403
Cannonborough-Elliotborough
Residential
MLS# 23026607 / Active
Rare opportunity to own multiple units in downtown Charleston on a large lot!Positioned within the short-term rental overlay, this property boasts ...
4526 Park Lake Drive
Kiawah Island, SC 29455
Kiawah Island
Residential
MLS# 23026583 / Active
This coastal style villa will have you captivated from the moment you step inside. It's cheerful and clean lines are appealing to the most selectiv...
Reduced -$40,000
1375 River Road
Johns Island, SC 29455
Residential
MLS# 23026575 / Active
Discover the epitome of waterfront luxury at this exquisite 2019 custom-built home, nestled in the serene setting of Penny Creek with a shared dock...
Reduced -$5,000
1076 Davis Drive
Summerton, SC 29148
Francis Marion
Residential
MLS# 23026574 / Active
NOW OFFERING OWNER FINANCING AND A $50k INTERIOR PAINTING/MASTER BATH UPGRADE ALLOWANCE! Welcome to your dream home on Lake Marion! This luxurious ...
Reduced -$100,000
1165 Oak Bluff Avenue
Charleston, SC 29492
Oak Bluff
Residential
MLS# 23026568 / Active
Personalize your New Elevated drive-under MARSH FRONT home! The Avondale continues to be a favorite plan! Bright, open and airy, this beautiful hom...
Increase +$4,000
1458 Tangles Trail
Charleston, SC 29492
Oak Bluff
Residential
MLS# 23026567 / Active
Build and design your New Elevated drive-under water view home! The Avondale continues to be a favorite plan! Bright, open and airy, this beautiful...
Reduced -$25,000
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