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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2207 Clubhouse Road
Summerton, SC 29148
Residential
MLS# 23025806 / Active
Don't miss your chance to own this waterfront house on Lake Marion! This home is tucked back in the peaceful Lizzie's Creek. It features a 1 year o...
Reduced -$30,995
1619 Zurlo Way
Johns Island, SC 29455
The Preserve At Fenwick Plantation
Residential
MLS# 23025797 / Active
Welcome to your dream home nestled in a serene cul-de-sac, where luxury meets tranquility. This home is the epitome of inviting--with clean lines f...
Increase +$36,000
220 N Highway 52
Moncks Corner, SC 29461
Residential
MLS# 23025780 / Active
Prime Location! Value is in the land only. There is no information given about the home on this property. This property is currently zoned Resident...
257 Shadybrook Drive
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23025770 / Active
Phase 6 New Release - The STARLING Floor plan. It's the perfect multi-generational solution! Gorgeous Board and Batten Siding in Coastal Sage highl...
70 Grand Pavilion Boulevard
Isle of Palms, SC 29451
Wild Dunes
Residential
MLS# 23025711 / Active
Rare opportunity to be a part of the Wild Dunes Grand Pavilion lifestyle. Ownership in this resort hub area offers unmatched amenities to you & you...
4601 Apple St
North Charleston, SC 29405
Wando Woods
Residential
MLS# 23025707 / Active
Come home to your dream deep-water waterfront retreat on the Ashley River! This captivating elevated home is a rare gem, offering an unparalleled l...
172 Donning Drive
Summerville, SC 29483
The Ponds
Residential
MLS# 23025668 / Active
What a Fantastic Home at a Fantastic Price in the Ponds, look no further, 172 Donning is it! Perfectly located in the Ponds within walking distance...
Reduced -$6,000
2260 Woodland Shores Road
Charleston, SC 29412
General Lee
Residential
MLS# 23025661 / Active
Seller's are very motivated and have dropped price to their bottom line. Took off the market due to time of year! Less than 2 miles to the Riverlan...
Reduced -$30,000
3193 Hugh Bennett Drive
Johns Island, SC 29455
Sea Island Preserve
Residential
MLS# 23025649 / Active
Quick Move-In Opportunity! Estimated Closing February/March 2024. This one won't last!Welcome to Sea Island Preserve. The only brand new luxury gat...
Reduced -$5,000
81, 81 1/2 Rutledge Avenue
Charleston, SC 29401
Harleston Village
Residential
MLS# 23025640 / Active
Welcome to the Sottile-Glover Mansion, this includes the main house, grounds keeper's building/garage/storage building and courtyard. A horizontal ...
3 Summit Avenue
Goose Creek, SC 29445
Sedgefield
Residential
MLS# 23025639 / Active
Beautiful four bedroom, two bathroom brick ranch located in an established neighborhood with no HOA. This home is in PRISTINE CONDITION and just wa...
Reduced -$4,000
108 Georgiana Drive
Cross, SC 29436
Lake Hill
Residential
MLS# 23025620 / Active
This spacious 1,908 square foot, handicap accessible home sits on a generous 0.96-acre lot, providing ample space for outdoor activities and garden...
Reduced -$5,000
19 Bradley Pasture Way
Ravenel, SC 29470
Poplar Grove
Residential
MLS# 23025592 / Active
Experience luxury living on 5 acres in Charleston's exclusive Poplar Grove community. This brand-new custom home offers a thoughtfully designed flo...
Reduced -$250,000
184 W Smith Street
Summerville, SC 29485
Lincolnville Square
Residential
MLS# 23025527 / Active
Welcome to this lovely property that offers a cozy ambiance with a fireplace, perfect for a warm and on chilly evenings. The interiors boast a natu...
Reduced -$1,000
204 Barberry Street
Summerville, SC 29483
White Gables
Residential
MLS# 23025519 / Active
It's home sweet home in this spacious Lowcountry home adorned with quintessential double front porches! Nestled in the desirable, picturesque White...
Reduced -$15,000
111 Shelly Street
Bonneau, SC 29431
Residential
MLS# 23025484 / Active
Welcome to this unique property that offers versatility and flexibility to its future owner. Located in a peaceful residential neighborhood, this p...
Reduced -$1,000
1510 Old Rosebud Trail
Awendaw, SC 29429
Pepper Plantation
Residential
MLS# 23025465 / Active
Serene marsh views on the Wando River! This 3 acre, private retreat is located within the gated community of Pepper Plantation. Just a short drive ...
Reduced -$200,000
330 Concord Street UNIT Th 9
Charleston, SC 29401
Dockside
Residential
MLS# 23025391 / Active
Enjoy lock-and-leave living in downtown Charleston from this 2 bedroom, 2.5 bath townhouse in Dockside Condominiums. Access this unit from the comm...
Reduced -$19,000
46-A State Street UNIT & 15 Lodge Alley
Charleston, SC 29401
French Quarter
Residential
MLS# 23025354 / Active
This beautiful townhouse consists of 2 tax map parcels owned fee simple and sold as one. There is no regime fee. This early 19th-century State Stre...
480 Lake Ridge Boulevard
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23025330 / Active
Pine Hills in Cane Bay, Summerville, South Carolina, offers a serene suburban lifestyle. Nestled amidst lush landscapes, it features elegant homes,...
Reduced -$9,000
4113 Buccaneer Road
Isle of Palms, SC 29451
Big Goat Island
Residential
MLS# 23025283 / Active
Island paradise located off the coast of Charleston, SC on the Atlantic Intracoastal Waterway, channel marker 116, just north of the Isle of Palms,...
Reduced -$323,000
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