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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2317 Cat Tail Pond Road
Seabrook Island, SC 29455
Seabrook Island
Residential
MLS# 23021877 / Active
Seabrook Island gem! This updated 3 bedroom 2 1/5 bath home is full of coastal charm and move-in ready. Perfect for a family beach getaway or an in...
Reduced -$15,000
366 Pelican Flight Drive
Dewees Island, SC 29451
Dewees Island
Residential
MLS# 23021822 / Active
Welcome to 366 Pelican Flight Drive, a captivating masterpiece that effortlessly blends bohemian-chic aesthetics with a profound dedication to gree...
312 Palm Boulevard
Isle of Palms, SC 29451
Residential
MLS# 23021775 / Active
Great potential renovation project or tear down and build new at a great location on Isle of Palms! Close to popular bars and restaurants on Sulliv...
Reduced -$100,000
170 Whaler Avenue
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23021756 / Active
**FHA ASSUMABLE LOAN WITH 2.5% INTEREST RATE* Indulge in the ultimate luxury lifestyle with this spectacular SINGLE-STORY home located in the prest...
Reduced -$5,000
587 Chamblee Road
Walterboro, SC 29488
Longleaf
Residential
MLS# 23021735 / Active
This new 3-bedroom 2 bath home is located close to everything Walterboro has to offer. The home has 2 X 6 exterior walls. When entering the great r...
611 Silver Spruce Street
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23021690 / Active
Welcome Home! Beautiful 2 story home offering 5 bedrooms and 3 full baths. One of the bedrooms and full bath is a mother-in-law suite located downs...
Reduced -$15,000
11 Reid Street
Charleston, SC 29403
Eastside
Residential
MLS# 23021666 / Active
YES! Listing it for TWO lots! - 11 Reid St & 13 Reid St.- Welcome to 11 Reid St. - Completely renovated and updated!! This lovely two story home is...
Reduced -$24,900
815 Descartes Street
Summerville, SC 29486
Nexton
Residential
MLS# 23021584 / Active
New 55+ Active Adult Community! Meet the Palmetto floorplan, a 1410sqft attached villa style home with easy living. Two bedrooms and two bathrooms ...
Reduced -$5,000
817 Descartes Street
Summerville, SC 29486
Nexton
Residential
MLS# 23021583 / Active
An incredible opportunity to own your own villa in Nexton's newest 55+ active adult community, Hammock Walk. Featuring duplex and quadplex homes, y...
Reduced -$5,000
813 Descartes Street
Summerville, SC 29486
Nexton
Residential
MLS# 23021571 / Active
New 55+ Active Adult Community! Meet the Palmetto floorplan, a 1410sqft attached villa style home with easy living. Two bedrooms and two bathrooms ...
Reduced -$5,000
204 Michigan Avenue UNIT C3
Folly Beach, SC 29439
Back Bay At Folly
Residential
MLS# 23021450 / Active
One of the most desirable Back Bay townhomes on the marsh. The small townhome community is tucked away in a quiet cul-de-sac on the island and with...
814 Descartes Street
Summerville, SC 29486
Nexton
Residential
MLS# 23021425 / Active
Meet the Palmetto floorplan, a 1410sq ft attached villa style home with easy living. Two bedrooms and two bathrooms are on the main level, and upst...
Reduced -$5,000
816 Descartes Street
Summerville, SC 29486
Nexton
Residential
MLS# 23021415 / Active
New 55+ Active Adult Community! Meet the Palmetto floorplan, a 1410sq ft attached villa style home with easy living. Two bedrooms and two bathrooms...
Reduced -$5,000
4334 Cotton Flat Road
Summerville, SC 29485
Watson Hill
Residential
MLS# 23021387 / Active
READY NOW! Introducing the Jefferson! A brand new floorplan in the community! Situated on an exclusive homesite backing to woods and has an HOA gre...
Reduced -$5,000
5513 Indigo Fields Boulevard
North Charleston, SC 29418
Indigo Fields
Residential
MLS# 23021377 / Active
WELCOME HOME, THIS SPACIOUS BRICK HOME IS FRESHLY PAINTED WITH UP GRADES AND IS WELL MAINTAINED!!!! INCLUDES FOUR BEDROOMS.WITH 5TH ROOM FOR A STUD...
58 Cross Court
Walterboro, SC 29488
Residential
MLS# 23021328 / Active
This Newly renovated 3 bedroom 2 bath Brick home is move in ready. It offers so many features new metal roof, formal dining room, living room, util...
Reduced -$10,000
7 Wappoo Trace Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23021320 / Active
Come build the NEW FOSTER Plan! This one story 3-5BR, 2-3BA is AMAZING!!!! Standard features include: Laminate Wood Flooring in main living areas, ...
Reduced -$37,000
9 Wappoo Trace Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23021319 / Active
Come build NEW EMERSON Plan! This MASTER DOWN, 2-5BR, 2.5-4.5BA has it ALL!!! Standard features include: Laminate Wood Flooring in main living area...
Reduced -$35,000
13 Wappoo Trace Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23021312 / Active
Come build the KINGSLEY! This 4-5BR 2.5-4.5BA has it ALL! Standard features include: Laminate Wood Flooring in main living areas, Wood treads on st...
Reduced -$35,000
292 Hundred Oaks Parkway
Summerville, SC 29483
The Ponds
Residential
MLS# 23021281 / Active
Introducing a one-of-a-kind upgraded home in the coveted neighborhood of The Ponds in Summerville! **Seller is now entertaining all reasonable offe...
Reduced -$20,000
801 Central Avenue
Summerville, SC 29483
Residential
MLS# 23021242 / Active
Charm and character abound in this one-of-a-kind 3 bed, 1.5 bath home situated on nearly 3/4 of an acre in a prime tree lined location, just 1 mile...
Increase +$150,000
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 EXP Realty LLC 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 04-28-2024 10:04 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.
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