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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2049 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
MLS# 23013249 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
Increase +$56,757
2045 Bullyard Sound Way
Awendaw, SC 29429
Enclave at Copahee Sound
Residential
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
Enclave at Copahee Sound
Residential
MLS# 23013246 / Active
Indulge in the coastal Carolina lifestyle at The Enclave, where luxury meets spaciousness. The Enclave includes Gas Lanterns, Granite Countertops, ...
Increase +$57,441
204 Saunter Court UNIT Lot 29
Johns Island, SC 29455
Hayes Park
Residential
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
Johns Island, SC 29455
Hayes Park
Residential
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...
Increase +$35,000
3886 Watson View Drive
Awendaw, SC 29429
Watson View
Residential
MLS# 23013212 / Active
Embrace the timeless elegance of Lowcountry living, Watson View features classic architecture seamlessly blending with modern convenience. Welcome ...
Increase +$5,000
4113 Craig Ascue Lane
Awendaw, SC 29429
Watson View
Residential
MLS# 23013206 / Active
Embrace the timeless elegance of Lowcountry living, Watson View features classic architecture seamlessly blending with modern convenience. Welcome ...
Increase +$5,000
205 Saunter Court UNIT Lot 23
Johns Island, SC 29455
Hayes Park
Residential
MLS# 23013037 / 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 +$22,000
201 Saunter Court UNIT Lot 22
Johns Island, SC 29455
Hayes Park
Residential
MLS# 23013036 / 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 +$22,000
351 St. Paul Road
Dorchester, SC 29437
Residential
MLS# 23012807 / Active
Welcome to 351 St Paul Road! True country living at its best! Tucked away behind an automatic gate, you'll find this 4 bedroom 2 bath home situated...
Reduced -$20,000
505 Ocean Mist Way
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23012720 / Active
LIST PRICE REFLECTS THOUSANDS IN FREE DESIGNER OPTIONS AS PART OF OUR PRE-GRAND OPENING SPECIAL. Enjoy the ''Lock and leave'' lifestyle in one of f...
Increase +$4,000
4218 River Road
Johns Island, SC 29455
Residential
MLS# 23012694 / Active
Live Work Property on Johns Island. Newly constructed 1500 SF Warehouse and 1,296 SF Live/Work office unit.
162 Basket Grass Lane
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23012510 / Active
*Seller is Offering $5000 towards Buyer's Closing Costs with an Acceptable Offer! Great opportunity to own this spacious 5 bedroom, 4 1/2 bath home...
Reduced -$13,000
301 Longshore Street UNIT #441
Charleston, SC 29492
Daniel Island
Residential
MLS# 23012174 / Active
With stunning expansive views of the Wando River and meandering waterways, this elegant penthouse condo greets you in true Lowcountry style. This l...
Reduced -$35,100
507 Ocean Mist Way
Summerville, SC 29486
Cane Bay Plantation
Residential
MLS# 23011980 / Active
New Community offering a fresh alternative for buyers looking to 'Right Size' their home w/a low maintenance lifestyle. Enthusiast design will be s...
Reduced -$90
3971 Gift Boulevard
Johns Island, SC 29455
Gift Plantation
Residential
MLS# 23011853 / Active
Custom built Lowcountry classic brick home situated on a magnificent 1.56 acre lot bordering beautiful wetlands and a large pond. A rare private se...
Reduced -$70,000
3001 Buccaneer Road
Isle of Palms, SC 29451
Goat Island
Residential
MLS# 23011618 / Active
Rare opportunity to own a HURRICANE RESISTANT house in the Lowcountry on Goat Island! Enjoy endless sunsets from the screened-in front porch and en...
Reduced -$55,000
571 Main Road
Johns Island, SC 29455
Residential
MLS# 23011356 / Active
This is it! The keystone corner lot w/ 293ft of frontage on Main Rd & 153ft on Old Pond Rd! .33 acres zoned Rural Commercial which offers flexibili...
Reduced -$25,000
563 Main Road
Johns Island, SC 29455
Residential
MLS# 23011354 / Active
Opportunity knocks once again! 2.17 acres zoned Rural Commercial! Mostly cleared, flat, high (no flood zone) w/ a 2,130 sqft 3br/1.5ba existing str...
714 Wilson Cemetery Road
Awendaw, SC 29429
Covenant Preserve
Residential
MLS# 23011031 / Active
Relax and escape to the natural paradise of Awendaw, a beautiful coastal town, just north of Charleston and Mt. Pleasant! Bordering the Francis Mar...
Reduced -$11,000
579 Faison Road UNIT #52
Mount Pleasant, SC 29466
Carolina Park
Residential
MLS# 23010990 / Active
Charleston's FIRST and only Luxury 'Storage Condominium' Gated Community! Luxury Storage Suites that you OWN! Car Collectors, Motorcycle Enthusiast...
Increase +$20,000
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 05-12-2024 1:27 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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