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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8088 New England Drive
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Colony North
Residential
MLS# 24010551 / Active
Welcome to 8088 New England Drive in North Charleston! This delightful single-story ranch home offers three bedrooms, two baths, and a world of con...
3837 Delinger Drive
Mount Pleasant, SC 29466
Carolina Park
Residential
MLS# 24010549 / Active
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5503 Green Dolphin Way
Kiawah Island, SC 29455
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Residential
MLS# 24010548 / Active
Enjoy this comfortable two bedroom, two bathroom located in Turtle Cove! This is a an original owner villa that has been well maintained and cared ...
769 Catawba Road
Charleston, SC 29414
Melrose
Residential
MLS# 24010547 / Active
Welcome to this beautifully renovated single-story home in West Ashley's established Melrose community! Sitting on a spacious lot, this move-in rea...
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Mount Pleasant, SC 29466
Carolina Park
Residential
MLS# 24010544 / Active
Be part of the Delinger's Point story in one of the last remaining custom sections in Riverside at Carolina Park. Over the last dozen-plus years, R...
1184 Colfax Court
Mount Pleasant, SC 29466
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Residential
MLS# 24010543 / Active
This home is in highly desirable Brickyard Plantation conveniently located south of Hwy 41 in the middle of Mount Pleasant. Many upgrades and updat...
4129 Chisolm Road
Johns Island, SC 29455
Residential
MLS# 24010541 / Active
Set upon a sprawling 19 acres, this idyllic Johns Island home provides the perfect country respite only 15 minutes from downtown Charleston. The fi...
1207 Wild Goose Trail
Summerville, SC 29483
Drakesborough
Residential
MLS# 24010540 / Active
This beautiful home is nestled in the neighborhood of Drakesborough. Picture yourself sitting on a rocking chair on the front porch, drinking your ...
154 Middleton Drive
Goose Creek, SC 29445
The Oaks
Residential
MLS# 24010539 / Active
The Ivy is a two-story, single-family home featuring a formal dining room as you enter, which then opens to the great room and kitchen creating a f...
1028 Hunley Waters Circle
North Charleston, SC 29405
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Residential
MLS# 24010538 / Active
Welcome to your elevated oasis overlooking the serene Noisette Creek- just 10 minutes from Downtown Charleston! Nestled in a gated community, this ...
9412 Sun Fountain Drive
Summerville, SC 29485
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Residential
MLS# 24010537 / Active
Luxury Club Living in an up to the minute three-level townhome with room to roam. Enter into a sizeable foyer complete with wide plank flooring and...
1490 Simmons Street
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Old Mt Pleasant
Residential
MLS# 24010536 / Active
4 bedroom 2.5 Bath home on large (.34 acre) corner lot in heart of Very Desirable Old Mount Pleasant. Renovated, open concept kitchen / living room...
425 Riverland Drive
Charleston, SC 29412
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Welcome to 425 Riverland Drive, located in sought-after James Island. Just a short stroll from Riverland Terrace, the Charleston Municipal Golf Cou...
2127 Fort Pemberton Drive
Charleston, SC 29412
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MLS# 24010532 / Active
Incredibly charming, classic 1950s Lowcountry Cape style home in the desirable Riverland Terrace neighborhood. This beloved community is bordered b...
498 Albemarle Road UNIT #208
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Brandymill
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MLS# 24010529 / Active
This charming one story home is only minutes to Downtown Summerville and convenient to shopping & restaurants plus sough after Dorchester 2 school ...
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Cross, SC 29436
Cross Area (west)
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This cozy home is nestled on a large 1-acre lot in an HOA free area! Picture yourself sitting on the front porch in a rocking chair, enjoying the c...
475 Spanish Wells Road
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Residential
MLS# 24010527 / Active
This beautiful home has a spacious open floor plan and ample storage. With four bedrooms and two and a half bathrooms, there's room for every lifes...
109 Saluda Drive
Santee, SC 29142
Santee Cooper Resort
Residential
MLS# 24010526 / Active
Your dream home awaits you in Santee Cooper Resort, a gated waterfront and golf course community! This home has been completely remodeled to have a...
3087 Adventure Way
Ladson, SC 29456
Hunters Bend
Residential
MLS# 24010524 / Active
Welcome home to this fantastic property in Hunters Bend, with curb appeal galore. The entry foyer leads to sunlit & fresh open concept living space...
4136 Veritas Street
Charleston, SC 29414
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Residential
MLS# 24010523 / Active
A hidden gem in Ashley Park chalk-full of delightful upgrades sure to suit the liking of all enthusiasts. End unit, pond lot townhome with hardscap...
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