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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34 Photos 475 Caledon Court Johns Island, SC 29455

475 Caledon Court
Johns Island, SC 29455
Indigo Grove
Residential

MLS# 26016896 / Active
4 br, 3 ba, 1 Half Bath, 2104 Sqft

FINAL 2 END UNITS! 30-year fixed rates as low as 4.99% for primary residences! Ideally located at the foot of the Maybank Hwy Bridge, this elegant ... 

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$519,990
Reduced -$9,800
Provided courtesy of SM SOUTH CAROLINA BROKERAGE LLC
39 Photos 754 Clay Field Trail Summerville, SC 29485

754 Clay Field Trail
Summerville, SC 29485
Summers Corner
Residential

MLS# 26016895 / Active
4 br, 4 ba, 1 Half Bath, 2851 Sqft

*Est. Completion Sept 2026* The Tradd plan- This Charleston style home features a first floor owners suite, wrap around front porch and large loft.... 

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$442,135
Reduced -$5,750
Provided courtesy of Lennar Sales Corp.
33 Photos 2069 Kings Gate Lane Mount Pleasant, SC 29466

2069 Kings Gate Lane
Mount Pleasant, SC 29466
Dunes West
Residential

MLS# 26016894 / Active
3 br, 2 ba, 1 Half Bath, 2225 Sqft

Welcome to 2026 Kings Gate Lane, a beautifully updated luxury townhome nestled within the highly sought-after Dunes West community in Mount Pleasan... 

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$668,000
Provided courtesy of Keller Williams Realty Charleston
35 Photos 5736 Allison Avenue Hanahan, SC 29410

5736 Allison Avenue
Hanahan, SC 29410
Charleston Farms
Residential

MLS# 26016889 / Active
2 br, 1 ba, 900 Sqft

Cutest little cottage! This updated cottage comes fully furnished with a great fenced in backyard. The double gates on the side fence allow for you... 

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$315,000
Provided courtesy of Carolina One Real Estate
75 Photos 45 Eastlake Road Mount Pleasant, SC 29464

45 Eastlake Road
Mount Pleasant, SC 29464
Ion
Residential

MLS# 26016887 / Active
5 br, 4 ba, 1 Half Bath, 2041 Sqft

Meticulously reimagined and effortlessly elegant, this newly renovated home delivers the best of I`On living, with the rare bonus of a carriage hou... 

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$2,299,000
Provided courtesy of SERHANT
35 Photos 8032 Shadow Oak Drive North Charleston, SC 29406

8032 Shadow Oak Drive
North Charleston, SC 29406
Oak Bluff
Residential

MLS# 26016886 / Active
2 br, 1 ba, 1 Half Bath, 1000 Sqft

Here`s your chance to get a great deal in Oak Bluff - 8032 Shadow Oak Drive is fully renovated and move-in ready with nothing left to do! New roof ... 

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$179,950
Provided courtesy of Brand Name Real Estate
38 Photos 1042 Adirondack Drive Summerville, SC 29485

1042 Adirondack Drive
Summerville, SC 29485
Summers Corner
Residential

MLS# 26016885 / Active
4 br, 2 ba, 1 Half Bath, 2187 Sqft

The Primrose, like our popular new model home in Heron`s Walk! Upon entry, you will be greeted with a spacious entry hall. The open layout offers a... 

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$379,015
Reduced -$10,000
Provided courtesy of Lennar Sales Corp.
27 Photos 232 Birmingham Drive Summerville, SC 29486

232 Birmingham Drive
Summerville, SC 29486
Sangaree
Residential

MLS# 26016883 / Active
4 br, 2 ba, 1670 Sqft

Discover a masterfully reimagined retreat at 232 Birmingham Drive, where modern luxury meets lowcountry charm on a coveted corner cul-de-sac lot. T... 

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$349,000
Provided courtesy of The Husted Team powered by Keller Williams
43 Photos 518 Tulip Poplar Drive Moncks Corner, SC 29461

518 Tulip Poplar Drive
Moncks Corner, SC 29461
Carolina Groves
Residential

MLS# 26016878 / Active
5 br, 4 ba, 1 Half Bath, 3415 Sqft

Spacious 5-Bedroom Mansfield Floorplan in Carolina Groves with Open-Concept Living & Flexible Layout in Moncks CornerWelcome to 518 Tulip Poplar Dr... 

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$479,000
Reduced -$4,845
Provided courtesy of D R Horton Inc
28 Photos 524 Trotters Lane Moncks Corner, SC 29461

524 Trotters Lane
Moncks Corner, SC 29461
Foxbank Plantation
Residential

MLS# 26016877 / Active
3 br, 2 ba, 1 Half Bath, 1698 Sqft

This beautifully maintained home has over $16K in aftermarket upgrades to include an accent wall with fireplace, ship lapped kitchen island, pendan... 

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$291,500
Provided courtesy of The Husted Team powered by Keller Williams
48 Photos 207 Cozy Brook Court Summerville, SC 29486

207 Cozy Brook Court
Summerville, SC 29486
Cane Bay Plantation
Residential

MLS# 26016876 / Active
3 br, 2 ba, 1 Half Bath, 1584 Sqft

Nestled on a quiet cul-de-sac, this inviting home offers the perfect blend of comfort, functionality, and Lowcountry charm. Step inside to discover... 

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$299,900
Provided courtesy of King and Society Real Estate
75 Photos 1520 Faith Street Mount Pleasant, SC 29466

1520 Faith Street
Mount Pleasant, SC 29466
Hamlin Plantation
Residential

MLS# 26016874 / Active
5 br, 3 ba, 1 Half Bath, 3228 Sqft

THE quintessential southern classic colonial awaits! This home stands apart with its classic entry, gas lantern & mature palms framing a beautifull... 

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$1,250,000
Reduced -$30,000
Provided courtesy of The Boulevard Company
69 Photos 302 Freeland Way Moncks Corner, SC 29461

302 Freeland Way
Moncks Corner, SC 29461
Foxbank Plantation
Residential

MLS# 26016873 / Active
4 br, 2 ba, 1 Half Bath, 2688 Sqft

Welcome to your serene suburban oasis! Nestled in a sought-after cul-de-sac, this captivating 4-bedroom, 2.5-bathroom home is a true sanctuary, off... 

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$498,000
Provided courtesy of Carolina One Real Estate
18 Photos 8867 Salamander Road UNIT #37 North Charleston, SC 29406

8867 Salamander Road UNIT #37
North Charleston, SC 29406
Pinckney Place
Residential

MLS# 26016870 / Active
3 br, 2 ba, 1 Half Bath, 1485 Sqft

Welcome home to the Compass floor plan, a well-designed 3-bedroom, 2.5-bath home offering modern finishes and low-maintenance living. Home includes... 

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$339,970
Reduced -$10
Provided courtesy of Starlight Homes
67 Photos 894 Rutledge Avenue Charleston, SC 29403

894 Rutledge Avenue
Charleston, SC 29403
North Central
Residential

MLS# 26016869 / Active
5 br, 4 ba, 2866 Sqft

Fully and masterfully restored historic Craftsman style home that seamlessly blends timeless architectural character circa 1935 with modern functio... 

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$2,375,000
Reduced -$20,000
Provided courtesy of The Boulevard Company
43 Photos 510 Tulip Poplar Drive Moncks Corner, SC 29461

510 Tulip Poplar Drive
Moncks Corner, SC 29461
Carolina Groves
Residential

MLS# 26016865 / Active
5 br, 4 ba, 1 Half Bath, 3389 Sqft

Spacious 5-Bedroom Mansfield Floorplan in Carolina Groves with Open-Concept Living & Flexible Layout in Moncks CornerWelcome to 510 Tulip Poplar Dr... 

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$483,298
Reduced -$4,882
Provided courtesy of D R Horton Inc
35 Photos 107 White Water Court Summerville, SC 29486

107 White Water Court
Summerville, SC 29486
Sangaree
Residential

MLS# 26016863 / Active
3 br, 2 ba, 1463 Sqft

This move-in-ready home offers the perfect combination of modern updates, convenience, and affordability with NO HOA.Step inside to find beautiful ... 

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$325,000
Provided courtesy of Carolina One Real Estate
43 Photos 2825 Sugarberry Lane Johns Island, SC 29455

2825 Sugarberry Lane
Johns Island, SC 29455
Whitney Lake
Residential

MLS# 26016860 / Active
3 br, 2 ba, 1 Half Bath, 2172 Sqft

Welcome to 2825 Sugarberry Lane, a pristine, one owner home offering classic Lowcountry elegance in Johnston Pointe a premier section of the highly... 

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$639,900
Provided courtesy of Engel & Volkers Charleston
28 Photos 622 Waterman Street UNIT #622 Charleston, SC 29492

622 Waterman Street UNIT #622
Charleston, SC 29492
Daniel Island
Residential

MLS# 26016859 / Active
3 br, 3 ba, 1 Half Bath, 3005 Sqft

Townhome 622 is a spacious three-bedroom residence offering four levels of indoor and outdoor living space and abundant natural light. The open mai... 

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$2,288,000
Provided courtesy of East West Realty, LLC
75 Photos 522 Marsh Cove Circle Summerville, SC 29486

522 Marsh Cove Circle
Summerville, SC 29486
Cane Bay Plantation
Residential

MLS# 26016858 / Active
2 br, 2 ba, 1 Half Bath, 2492 Sqft

Impeccably maintained featuring beautiful after-market upgrades, this popular Porto home is stunning! With 2 bedrooms, 2.5 baths, a home office, an... 

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$649,900
Reduced -$25,000
Provided courtesy of Carolina Elite Real Estate
75 Photos 277 Overcup Loop Summerville, SC 29486

277 Overcup Loop
Summerville, SC 29486
Cane Bay Plantation
Residential

MLS# 26016856 / Active
5 br, 2 ba, 1 Half Bath, 2823 Sqft

**5.25% VA ASSUMABLE LOAN** Welcome to 277 Overcup Loop, an impeccably upgraded 5-bedroom, 2.5-bathroom residence located in the highly sought-afte... 

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$474,990
Provided courtesy of The Boulevard Company
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