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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54 Photos 5050 White Cedar Road Ladson, SC 29456

5050 White Cedar Road
Ladson, SC 29456
Coosaw Preserve
Residential

MLS# 26017376 / Active
3 br, 2 ba, 1 Half Bath, 1670 Sqft

Welcome home to this impeccably adorable home in Coosaw Preserve. Located in a Dorchester District II neighborhood with the elementary school right... 

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$375,000
Provided courtesy of Agent Group Realty Charleston
75 Photos
Open House: Sun Jul 12th, 12:00pm - 3:00pm
184 Hidden Cove Lane Ridgeville, SC 29472

184 Hidden Cove Lane
Ridgeville, SC 29472
Residential

MLS# 26017375 / Active
2 br, 3 ba, 2424 Sqft

PRIVATE 10.73-ACRE LOG CABIN RETREAT WITH POOL, HOT TUB, KAYAK ACCESS, AND INCREDIBLE INCOME POTENTIAL. If you`ve been dreaming of owning a private... 

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$729,900
Provided courtesy of Carolina Elite Real Estate
33 Photos 136 Acorn Lane Santee, SC 29142

136 Acorn Lane
Santee, SC 29142
Residential

MLS# 26017368 / Active
5 br, 6 ba, 1 Half Bath, 6500 Sqft

Welcome to 136 Acorn Lane, a thoughtfully designed custom home situated on approximately 3 private acres at the end of a quiet road in Santee. Offe... 

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$1,295,000
Provided courtesy of The Real Estate Firm
17 Photos 845 E Butternut Road Summerville, SC 29483

845 E Butternut Road
Summerville, SC 29483
Residential

MLS# 26017367 / Active
4 br, 2 ba, 1904 Sqft

Enjoy the freedom of no HOA on this 0.74 acre property! This 4 bedroom, 2 bathroom home features two living areas, a fenced backyard, and double ga... 

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$285,000
Provided courtesy of The Shawn Cleary Team Powered by Keller Williams
44 Photos
Open House: Tomorrow 11:00am - 2:00pm
110 Creek Bend Drive Summerville, SC 29485

110 Creek Bend Drive
Summerville, SC 29485
Bridges Of Summerville
Residential

MLS# 26017363 / Active
3 br, 2 ba, 1423 Sqft

Looking for a single story home in Summerville with energy-saving upgrades and outdoor living space? This ranch offers comfortable living in a cent... 

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$365,000
Provided courtesy of Carolina One Real Estate
43 Photos 1036 Old Cypress Run Hanahan, SC 29410

1036 Old Cypress Run
Hanahan, SC 29410
Oak Pointe
Residential

MLS# 26017360 / Active
4 br, 3 ba, 1 Half Bath, 2320 Sqft

This stunning 4-bedroom, 3.5-bath, ~2,300 sq ft end-unit townhome offers the space and amenities of a single-family home with unbeatable value. On ... 

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$450,000
Provided courtesy of Realty ONE Group Coastal
74 Photos
Open House: Tomorrow 11:00am - 1:00pm
25 Ocean Green Drive Kiawah Island, SC 29455

25 Ocean Green Drive
Kiawah Island, SC 29455
Residential

MLS# 26017355 / Active
4 br, 3 ba, 1 Half Bath, 2764 Sqft

Welcome home to 25 Ocean Green Drive in the heart of Vanderhorst Plantation, just past the second gate. Situated across from the community pool and... 

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$2,550,000
Provided courtesy of Akers Ellis Real Estate LLC
57 Photos 114 Ashley Hill Drive Goose Creek, SC 29445

114 Ashley Hill Drive
Goose Creek, SC 29445
Crowfield Plantation
Residential

MLS# 26017349 / Active
4 br, 2 ba, 1 Half Bath, 2898 Sqft

Golf-Community Living, Generous Space, and Great Potential come together at 114 Ashley Hill Drive in The Hamlets in the coveted Crowfield community... 

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$545,000
Provided courtesy of Realty One Group Coastal
37 Photos 216 Hungerford Drive Summerville, SC 29486

216 Hungerford Drive
Summerville, SC 29486
Cane Bay Plantation
Residential

MLS# 26017348 / Active
3 br, 2 ba, 1 Half Bath, 2426 Sqft

BELTON A FLOORPLAN! Kitchen opens to casual dining area. Granite countertops, tiled backsplash, walk-in pantry & gas range. Luxury Vinyl Plank on m... 

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$449,990
Provided courtesy of DFH Realty Georgia, LLC
33 Photos 5762 Hwy165 Ravenel, SC 29470

5762 Hwy165
Ravenel, SC 29470
Ravenel
Residential

MLS# 26017343 / Active
3 br, 2 ba, 1312 Sqft

Originally built in 1901, this renovated 3-bed, 2-bath cottage blends charm and character with modern updates. The half acre lot situated under gra... 

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$400,000
Provided courtesy of Carolina One Real Estate
4 Photos 218 Hungerford Drive Summerville, SC 29486

218 Hungerford Drive
Summerville, SC 29486
Cane Bay Plantation
Residential

MLS# 26017342 / Active
4 br, 2 ba, 1 Half Bath, 2193 Sqft

READY EARLY FALL ! FINWOOD A FLOORPLAN! Open kitchen with granite countertops, tiled backsplash, walk-in pantry, microwave & gas range. Luxury Viny... 

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$443,990
Provided courtesy of DFH Realty Georgia, LLC
26 Photos 8011 Caswell Court Ladson, SC 29456

8011 Caswell Court
Ladson, SC 29456
Elms Glen
Residential

MLS# 26017339 / Active
3 br, 3 ba, 1 Half Bath, 1918 Sqft

SEPT. Delivery! *4.99% (FHA/VA) FIXED RATE PLUS PLUS $3,500 CC w/ use of pref. Lender and Attorney!* Welcome to Elms Glen...the latest new communit... 

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$274,990
Reduced -$5,000
Provided courtesy of SM SOUTH CAROLINA BROKERAGE LLC
51 Photos 145 Brightwood Drive Huger, SC 29450

145 Brightwood Drive
Huger, SC 29450
Brightwood
Residential

MLS# 26017337 / Active
4 br, 2 ba, 1 Half Bath, 2238 Sqft

This beautifully upgraded home features a highly desirable main-level primary suite and is packed with premium features throughout its spacious, op... 

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$430,000
Reduced -$10,000
Provided courtesy of Keller Williams Realty Charleston
34 Photos 8015 Ardbeg Cove Ravenel, SC 29470

8015 Ardbeg Cove
Ravenel, SC 29470
Hillcrest
Residential

MLS# 26017335 / Active
4 br, 2 ba, 1 Half Bath, 2174 Sqft

Ravenel, SC Homes at Hillcrest | Open Floor Plans Near West Ashley & CharlestonWelcome to 8015 Ardbeg Cove in the Hillcrest community of Ravenel, S... 

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$397,500
Increase +$1,000
Provided courtesy of D R Horton Inc
7 Photos 305 Magnolia Road Charleston, SC 29407

305 Magnolia Road
Charleston, SC 29407
Ashley Forest
Residential

MLS# 26017334 / Active
4 br, 3 ba, 1 Half Bath, 2408 Sqft

Don`t miss this RARE opportunity to build in one of West Ashley`s most sought-after neighborhoods, just a short walk to Avondale shops and dining. ... 

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$1,395,000
Provided courtesy of Carolina One Real Estate
35 Photos 1212 Jeanna Street Summerville, SC 29486

1212 Jeanna Street
Summerville, SC 29486
Ashley Plantation
Residential

MLS# 26017333 / Active
3 br, 2 ba, 1 Half Bath, 1344 Sqft

Welcome home to this beautifully maintained 3-bedroom, 2.5-bath residence offering approximately 1,344 square feet of comfortable living space. Fea... 

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$299,900
Provided courtesy of Elite Palmetto Real Estate
4 Photos 410 Colfax Lane Summerville, SC 29486

410 Colfax Lane
Summerville, SC 29486
Cane Bay Plantation
Residential

MLS# 26017328 / Active
3 br, 2 ba, 1 Half Bath, 2120 Sqft

KINGSFORD C 3 BEDROOM WITH LOFT! WALK into the foyer that extends to the great room and kitchen w/casual dining. Gas range, white cabinets, granite... 

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$438,861
Provided courtesy of DFH Realty Georgia, LLC
62 Photos 208 Oakbend Street Summerville, SC 29483

208 Oakbend Street
Summerville, SC 29483
Nexton
Residential

MLS# 26017324 / Active
4 br, 3 ba, 1 Half Bath, 3063 Sqft

Welcome to 208 Oakbend Street in Nexton`s sought-after Brighton Park Village! Backing to a tranquil pond with picturesque views of South Carolina p... 

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$774,900
Provided courtesy of Weichert Realtors Lifestyle
29 Photos 8019 Ardbeg Cove Ravenel, SC 29470

8019 Ardbeg Cove
Ravenel, SC 29470
Hillcrest
Residential

MLS# 26017321 / Active
3 br, 2 ba, 1618 Sqft

Hillcrest Ravenel SC Homes for Sale | New Construction Near Edisto Beach & Hwy 17Welcome to 8019 Ardbeg Cove in the Hillcrest community of Ravenel,... 

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$365,500
Increase +$1,000
Provided courtesy of D R Horton Inc
19 Photos 243 Grouper Lane Summerville, SC 29483

243 Grouper Lane
Summerville, SC 29483
The Cove at Mallard Crossing
Residential

MLS# 26017320 / Active
4 br, 2 ba, 1 Half Bath, 1857 Sqft

New Construction Home in Summerville, SCYour new chapter begins at 243 Grouper Lane, located in The Cove at Mallard Crossing. This alley-fed home i... 

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$383,620
Reduced -$150
Provided courtesy of D R Horton Inc
66 Photos
Open House: Today 12:00pm - 2:00pm
112 Pine Valley Drive Summerville, SC 29483

112 Pine Valley Drive
Summerville, SC 29483
Pine Forest Country Club
Residential

MLS# 26017319 / Active
4 br, 3 ba, 1 Half Bath, 3102 Sqft

Welcome to this exceptional home in the Pine Forest Country Club community of Summerville. With its attractive brick exterior, three-car garage fea... 

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$850,000
Provided courtesy of The Boulevard Company
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