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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477 Sea Cloud Circle
Edisto Island, SC 29438
Wyndham Ocean Ridge
Residential
MLS# 23022181 / Active
Awesome opportunity to own a Professionally decorated, fully furnished townhome overlooking a lagoon in Ocean Ridge Resort. This townhome features ...
5810 Beverly Drive
Hanahan, SC 29410
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Residential
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Brand New Home fully permitted for construction located in the heart of Hanahan! This is ONE of TWO homes to be built in the area both which will c...
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679 Ladywood Drive
Summerville, SC 29486
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This homesite backs to a pond view. Pine Hills in Cane Bay, Summerville, South Carolina, offers a serene suburban lifestyle. Nestled amidst lush la...
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138 High Hammock Villas Road
Seabrook Island, SC 29455
Residential
MLS# 23022031 / Active
Renovated and ready-to-roll!! This 2 bed/2 bath villa is the perfect little bungalow for a getaway or a great investment property. Rental income an...
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5434 Chaplins Landing Road
Hollywood, SC 29449
Residential
MLS# 23021997 / Active
A rare deepwater estate of 29+ acres on the Stono River lends breathtaking views to this upscale custom-built home of over 8,000 square feet. A Coo...
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13101 Pelican Watch Villas
Seabrook Island, SC 29455
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Residential
MLS# 23021993 / Active
This one-bedroom Pelican Watch villa offers easy beach access with stunning water views and unmatched year-round sunsets. Upgraded, beautifully fur...
Reduced -$4,000
3461 Walter Drive
Johns Island, SC 29455
Johns Island
Residential
MLS# 23021983 / Active
Don't miss out on this amazing chance to become the proud owner of a stunning BRAND NEW HOME! Situated on a generous 0.33-acre lot with no HOA fees...
Reduced -$1,000
1879 Richmond Street
Charleston, SC 29407
Residential
MLS# 23021895 / Active
Incredible opportunity for almost one full acre in a prime West Ashley location with easy and almost immediate access to Highway I 526 and Paul Can...
Reduced -$40,000
366 Pelican Flight Drive
Dewees Island, SC 29451
Dewees Island
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MLS# 23021822 / Active
Welcome to 366 Pelican Flight Drive, a captivating masterpiece that effortlessly blends bohemian-chic aesthetics with a profound dedication to gree...
170 Whaler Avenue
Summerville, SC 29486
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MLS# 23021756 / Active
Welcome to this SINGLE-STORY home located in the prestigious Cane Bay Plantation. Offering 3 bedrooms, 2 bathrooms plus a separate office, this res...
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611 Silver Spruce Street
Summerville, SC 29486
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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...
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Charleston, SC 29403
Eastside
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MLS# 23021666 / Active
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Summerville, SC 29486
Nexton
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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 -$30,000
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Summerville, SC 29486
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Summerville, SC 29486
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Folly Beach, SC 29439
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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
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MLS# 23021425 / Active
Meet the Palmetto floorplan, a 1410sq ft attached villa style home in Nexton's newest 55+ community. This villa offers two bedrooms and two bathroo...
Reduced -$20,000
816 Descartes Street
Summerville, SC 29486
Nexton
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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...
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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 -$25,000
5513 Indigo Fields Boulevard
North Charleston, SC 29418
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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...
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7 Wappoo Trace Lane
Summerville, SC 29486
Cane Bay Plantation
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MLS# 23021320 / Active
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