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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117 Storey Road
Summerville, SC 29483
Twin Lakes
Residential
MLS# 23024441 / Active
Country living on 1/2 acre tucked away on a quiet road with the convenience of being right in Summerville. The seller just added a BRAND NEW BEAUTI...
2 Wharfside Street UNIT 2d
Charleston, SC 29401
Laurens Place
Residential
MLS# 23024434 / Active
***Ask about the possibility of receiving 1% reduction in interest rate and free refi.*** TWO PARKING SPOTS! Introducing a sophisticated living exp...
Reduced -$250,000
1798 United Drive
Huger, SC 29450
Bates Estates II
Residential
MLS# 23024214 / Active
Featuring 2022 Oakwood Mobile Home on tranquil one acre lot. The home is modern, spacious and designed for comfortable living. The open floor plan ...
117 Silverbell Lane
Ravenel, SC 29470
Poplar Grove
Residential
MLS# 23024212 / Active
Embrace the Charleston dream with this unparalleled, waterfront haven, nestled in the gated community of Poplar Grove. This custom-build, is a 4-be...
Increase +$100,000
2850 Headwater Drive
Summerville, SC 29486
Hewing Farms
Residential
MLS# 23024044 / Active
PROPOSED CONSTRUCTION. THIS FANTASTIC NEW SALUDA FLOOR PLAN FEATURES A 3 CAR GARAGE FIRST FLOOR GUEST SUITE AND CAN BE BUILT AS A 4, 5 or 6 BEDROOM...
336 Watergrass Street
Summerville, SC 29486
Nexton
Residential
MLS# 23023996 / Active
Nestled in the vibrant community of Nexton, this exquisite 3 bedroom, 2.5 bath home is both charming and offers modern conveniences. From the invit...
Reduced -$10,000
146 Blackwater Way
Moncks Corner, SC 29461
Fairmont South
Residential
MLS# 23023948 / Active
Welcome to 146 Blackwater Way! This great 4 bedroom 2.5 bath home is located within the sought after community of Fairmont South! The first floor c...
Reduced -$10,000
118 Ashley Cove Way
Summerville, SC 29483
Ashley Cove
Residential
MLS# 23023925 / Active
The Cypress is a three-story, four-bedroom, three-bath home with a formal dining room, a first-floor guest suite with a full bath, and a kitchen wi...
Reduced -$2,070
16 Center Street UNIT #2
Folly Beach, SC 29439
Residential
MLS# 23023893 / Active
Looking for a beach house in the center of it all? Then look no further that 16 Center St unit 2!! This unit has been completely updated to include...
Reduced -$25,000
133 Congaree Court
Santee, SC 29142
Center Pointe
Residential
MLS# 23023849 / Active
Limited time up to $20k finance incentive with builder's preferred lender and attorney. This homesite features a private lot with wooded buffer ove...
Reduced -$3,355
152 Spring Street UNIT F
Charleston, SC 29403
Cannonborough-Elliotborough
Residential
MLS# 23023835 / Active
152 Spring Street Unit F is conveniently located in downtown Charleston just a short walk from all amenities that make Charleston living so desired...
223 Grand Oaks Drive
Ladson, SC 29456
Grand Oaks Preserve
Residential
MLS# 23023833 / Active
This townhome in the quaint Grand Oaks Preserve is turnkey and offers one an income generating property, or simply one's primary home. Many upgrade...
Reduced -$3,000
5000 Middleton Drive
Goose Creek, SC 29445
The Oaks
Residential
MLS# 23023832 / Active
The Sago is a two-story, single-family home ideal for families wanting a private primary bedroom on the first floor away from the secondary bedroom...
Increase +$4,000
4000 Middleton Drive
Goose Creek, SC 29445
The Oaks
Residential
MLS# 23023806 / Active
Spread out in the Aspen, a two-story, single-family home featuring an oversized great room and adjoining kitchen for maximizing family time. Privat...
Increase +$4,000
114 Ashley Cove Way
Summerville, SC 29483
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Residential
MLS# 23023788 / Active
The Wilmington is a two-story, four-bedroom, two-and-a-half-bath home with a formal living room, formal dining room, spacious family room, and kitc...
Reduced -$2,615
675 Murraysville Road
Moncks Corner, SC 29461
Residential
Reduced -$1
23 22nd Avenue
Isle of Palms, SC 29451
Residential
MLS# 23023762 / Active
Welcome to this charming rancher nestled on a rare half-acre lot on the serene Isle of Palms, a true oasis of comfort and tranquility. This delight...
Reduced -$65,000
136 Bateaux Drive
Summerville, SC 29483
The Ponds
Residential
MLS# 23023760 / Active
This proposed construction is set to be completed by the third quarter of 2024. Your brand new home awaits on one of the most prominent and sought ...
Fickling Hill Road UNIT Tbd
Johns Island, SC 29455
Residential
MLS# 23023750 / Active
LIMITED FIRST PHASE INTRODUCTORY PRICING AVAILABLE NOW!! Charleston Toy Box - Your Ultimate Luxury Car Condo Community! Discover the pinnacle of ca...
Fickling Hill Road UNIT Tbd
Johns Island, SC 29455
Residential
MLS# 23023749 / Active
LIMITED FIRST PHASE INTRODUCTORY PRICING AVAILABLE NOW!! Charleston Toy Box - Your Ultimate Luxury Car Condo Community! Discover the pinnacle of ca...
Fickling Hill Road UNIT Tbd
Johns Island, SC 29455
Johns Island
Residential
MLS# 23023748 / Active
LIMITED FIRST PHASE INTRODUCTORY PRICING AVAILABLE NOW!! Introducing Charleston Toy Box - Your Ultimate Luxury Car Condo Community! Discover the pi...
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