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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514 Trotters Lane UNIT #138
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Residential
MLS# 23014880 / Active
egret Standard layout has an open concept kitchen with island open to breakfast area and family room. Owner's suite with sitting area, generous wal...
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3 Bedroom and 2 Bath home waiting for that special someone to do the necessary repairs or updates to make it your own! With some TLC, this could be...
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Seabrook Island, SC 29455
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This price improvement gives you the perfect opportunity to make this your new beach getaway. Picture yourself lounging on your private covered dec...
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298 Summerset Lane
Summerville, SC 29483
Summerset Acres
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MLS# 23014639 / Active
This home sits on a 1.7 Acre lot and can have another home built on the same lot (Accessory Dwelling Unit). This home has been expanded and upgrade...
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2342 Parsonage Road
Charleston, SC 29414
Pierpont
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MLS# 23014619 / Active
*Ask about the possibility of receiving 1% reduction in interest rate and free refi.* This 2.9-acre property along the Ashley River is a stunning o...
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2290 N Palmetto Fort Drive
Mount Pleasant, SC 29466
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Extraordinary, one-of-a-kind, 5-acre farm in the middle of Mt Pleasant! This beautifully designed, custom-built horse farm is adjacent to Oyster Po...
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2833 Rowley Lane
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PROPOSED CONSTRUCTION! This gorgeous new Saluda floor plan features a 3 car garage. Options include a first floor guest suite, 4-6 bedrooms, loft, ...
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7 Fairway Dunes Lane
Isle of Palms, SC 29451
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MLS# 23013800 / Active
Looking for a place at the beach for 4 weeks of the year. Here is a perfect place. The condo is located at Wild Dunes on the Isle of Palms. The Con...
1715 Middle Street
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Build your dream home, Ocean, Beach, Bay, and History! Extraordinary opportunity to live on coveted Sullivan's Island in Charleston South Carolina....
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What a unique opportunity to live and have all of the conveniences of Daniel Island without all the HOA restrictions and room to spread out on over...
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Awendaw, SC 29429
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MLS# 23013253 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
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MLS# 23013252 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
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MLS# 23013249 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
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Awendaw, SC 29429
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MLS# 23013248 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
Increase +$2,493
2037 Bullyard Sound Way
Awendaw, SC 29429
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MLS# 23013246 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
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204 Saunter Court UNIT Lot 29
Johns Island, SC 29455
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MLS# 23013235 / Active
*NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK Johns Island's only pedestrian-scaled community that elevates your lifes...
Increase +$26,000
200 Saunter Court UNIT Lot 30
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MLS# 23013233 / Active
*NEVER BEFORE SEEN NEW CONSTRUCTION ON JOHNS ISLAND! Welcome to HAYES PARK Johns Island's only pedestrian-scaled community that elevates your lifes...
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Awendaw, SC 29429
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4113 Craig Ascue Lane
Awendaw, SC 29429
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Residential
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Embrace the timeless elegance of Lowcountry living, Watson View features classic architecture seamlessly blending with modern convenience. Welcome ...
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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 05-13-2024 10:28 PM 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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