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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45 Photos 928 Leonard Drive Johns Island, SC 29455

928 Leonard Drive
Johns Island, SC 29455
Morris Acres
Residential

MLS# 26019500 / Active
3 br, 2 ba, 1482 Sqft

***Ask about the possibility of receiving 1% reduction in interest rate and free refi.***Located on nearly half an acre in the heart of Johns Islan... 

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$479,900
Provided courtesy of Matt O'Neill Real Estate
47 Photos 1074 Trotters Boulevard Summerville, SC 29483

1074 Trotters Boulevard
Summerville, SC 29483
Trotters Ridge
Residential

MLS# 26019499 / Active
4 br, 2 ba, 1937 Sqft

If you are looking for an established neighborhood in Summerville, Trotters Ridge should be on your list. Come check out this lovely home on a larg... 

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$399,999
Provided courtesy of AgentOwned Realty
17 Photos 130 Chandler Drive Ladson, SC 29456

130 Chandler Drive
Ladson, SC 29456
Chandler Village
Residential

MLS# 26019495 / Active
3 br, 2 ba, 1128 Sqft

Opportunity is knocking! Nestled on a quiet street with no through traffic, this 3 bedroom, 2 bath home offers nice natural light, renovated bathro... 

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$264,900
Provided courtesy of Real Broker, LLC
38 Photos 1507 Evergreen Street Charleston, SC 29407

1507 Evergreen Street
Charleston, SC 29407
Ardmore
Residential

MLS# 26019493 / Active
4 br, 2 ba, 1269 Sqft

Rarely does a multifamily opportunity like this become available in West Ashley, 29407. This duplex with A HUGE LOT, is in good condition, and has ... 

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$356,000
Provided courtesy of The Boulevard Company
60 Photos 4318 Hugh Bennett Drive Johns Island, SC 29455

4318 Hugh Bennett Drive
Johns Island, SC 29455
Sea Island Preserve
Residential

MLS# 26019492 / Active
4 br, 3 ba, 1 Half Bath, 2978 Sqft

Welcome to 4318 Hugh Bennett Drive, a stunning Southern Traditional residence completed in 2024 that offers the rare opportunity to own an almost-n... 

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$860,000
Provided courtesy of Daniel Ravenel Sotheby's International Realty
33 Photos 439 Cadbury Loop Summerville, SC 29486

439 Cadbury Loop
Summerville, SC 29486
Creekside at Andrews
Residential

MLS# 26019488 / Active
4 br, 2 ba, 1 Half Bath, 2248 Sqft

Hidden in the middle of everything! Welcome home to Creekside at Andrews, where you are intimately tucked away yet the world is at your fingertips.... 

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$436,990
Provided courtesy of DRB Group South Carolina, LLC
29 Photos 438 Cadbury Loop Summerville, SC 29486

438 Cadbury Loop
Summerville, SC 29486
Creekside at Andrews
Residential

MLS# 26019484 / Active
3 br, 2 ba, 1 Half Bath, 1590 Sqft

Welcome home to Creekside at Andrews, where you are intimately tucked away yet the world is at your fingertips. Embrace a lifestyle away from the h... 

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$372,990
Provided courtesy of DRB Group South Carolina, LLC
22 Photos 268 Torslanda Lane Summerville, SC 29486

268 Torslanda Lane
Summerville, SC 29486
Petterson Meadows
Residential

MLS# 26019483 / Active
5 br, 3 ba, 2237 Sqft

Beautiful IN-GROUND POOL. A fantastic 5-Bedroom home. just 5 minutes from I-26 at exit 194. There`s plenty of room for family and more, including 4... 

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$450,000
Provided courtesy of RE/MAX Southern Shores
17 Photos 113 Tunnel Road Summerville, SC 29483

113 Tunnel Road
Summerville, SC 29483
Residential

MLS# 26019478 / Active
3 br, 2 ba, 1774 Sqft

SOUTHERN COMFORT AND COUNTRY LIVING at its finest!! Just minutes from the hustle bustle of big neighborhoods, this pleasant county oasis with over ... 

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$450,000
Provided courtesy of Miler Properties, Inc.
22 Photos 7624 Indigo Palms Way Johns Island, SC 29455

7624 Indigo Palms Way
Johns Island, SC 29455
Indigo Hall At Hope Plantation
Residential

MLS# 26019473 / Active
2 br, 2 ba, 1224 Sqft

Resale unit. Lightly used as a second home and impeccably maintained, this move-in ready residence is offered fully furnished--including the washer... 

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$410,000
Provided courtesy of EXP Realty LLC
22 Photos 2401 Falcon Road North Charleston, SC 29406

2401 Falcon Road
North Charleston, SC 29406
Wildwood
Residential

MLS# 26019472 / Active
3 br, 1 ba, 925 Sqft

A full 2022 renovation, a big fenced yard, and a commute you can actually live with. This single-story 3-bedroom, 1-bath home in North Charleston p... 

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$238,000
Provided courtesy of Real Broker, LLC
39 Photos
Open House: Tomorrow 11:00am - 1:00pm
890 W Madison Avenue Charleston, SC 29412

890 W Madison Avenue
Charleston, SC 29412
Centerville
Residential

MLS# 26019471 / Active
5 br, 4 ba, 2071 Sqft

Located in one of James Island`s most desirable neighborhoods, this beautiful 5-bedroom, 4-bathroom home is just 8 minutes to Downtown Charleston a... 

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$825,000
Provided courtesy of Carolina One Real Estate
26 Photos 115 Pebble Creek Road Summerville, SC 29486

115 Pebble Creek Road
Summerville, SC 29486
Sangaree
Residential

MLS# 26019470 / Active
2 br, 2 ba, 953 Sqft

Welcome to this charming 2-bedroom, 2-bath home in the established Sangaree community, offering comfortable one-level living in an unbeatable locat... 

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$284,500
Provided courtesy of Keller Williams Realty Charleston
41 Photos 229 N Shelmore Boulevard Mount Pleasant, SC 29464

229 N Shelmore Boulevard
Mount Pleasant, SC 29464
Ion
Residential

MLS# 26019469 / Active
4 br, 3 ba, 1948 Sqft

Welcome to 229 N. Shelmore Boulevard, a rare I`On gem under $2 million that has been remodeled top to bottom. This lovely four-bedroom home has jus... 

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$1,925,000
Provided courtesy of William Means Real Estate, LLC
6 Photos Lot D-2 Hwy 165 Ravenel, SC 29470

Lot D-2 Hwy 165
Ravenel, SC 29470
Residential

MLS# 26019468 / Active
4 br, 3 ba, 2700 Sqft

PROPOSED CONSTRUCTION on a 2+ acre, no HOA lot, only minutes from I-26, Summerville and all things Charleston! $20,000 builder incentive to spend o... 

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$789,000
Provided courtesy of Realty Solutions Group
43 Photos 514 Tarleton Drive Summerville, SC 29483

514 Tarleton Drive
Summerville, SC 29483
Reminisce
Residential

MLS# 26019465 / Active
4 br, 2 ba, 1 Half Bath, 2718 Sqft

Welcome to 514 Tarleton Drive in Reminisce, a thoughtfully designed home situated within the Dorchester District Two school district. This spacious... 

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$419,000
Provided courtesy of Carolina One Real Estate
26 Photos 1081 Peridote Way Ladson, SC 29456

1081 Peridote Way
Ladson, SC 29456
Taylor Farms
Residential

MLS# 26019463 / Active
3 br, 2 ba, 1183 Sqft

Freshly painted to maintain its like-new feel, this home has been exceptionally well cared for and features a brand-new roof installed in 2025. And... 

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$320,000
Provided courtesy of Real Broker, LLC
49 Photos
Open House: Tomorrow 12:00pm - 3:00pm
5150 Trump Street UNIT #602 North Charleston, SC 29420

5150 Trump Street UNIT #602
North Charleston, SC 29420
Charleston Park
Residential

MLS# 26019462 / Active
3 br, 2 ba, 1 Half Bath, 1703 Sqft

Standout features set this upgraded 3-bedroom, 2.5-bath, 1,703 sq ft townhome-style condo apart from anything else in the Pines of Charleston Park.... 

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$309,900
Provided courtesy of Redfin Corporation
74 Photos 1055 Royalist Road Mount Pleasant, SC 29464

1055 Royalist Road
Mount Pleasant, SC 29464
Snee Farm
Residential

MLS# 26019461 / Active
4 br, 2 ba, 1 Half Bath, 3160 Sqft

Behind one of Snee Farm`s most established addresses, you`ll find something rare: a home taken down to the studs and thoughtfully rebuilt. Picture ... 

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$1,750,000
Provided courtesy of SERHANT
57 Photos 804 Kings Oak Court UNIT #1 Charleston, SC 29492

804 Kings Oak Court UNIT #1
Charleston, SC 29492
Governors Cay
Residential

MLS# 26019459 / Active
3 br, 2 ba, 1 Half Bath, 1898 Sqft

Welcome to 804 Kings Oak Court Unit 1, a beautifully positioned end-unit townhome in the sought-after Governor`s Cay community, offering expansive ... 

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$635,000
Provided courtesy of Carolina One Real Estate
36 Photos 995 Oakcrest Drive Charleston, SC 29412

995 Oakcrest Drive
Charleston, SC 29412
Willow Walk
Residential

MLS# 26019458 / Active
3 br, 2 ba, 1139 Sqft

Welcome to your own private retreat on James Island! Perfectly situated on a peaceful cul-de-sac and backing to a tranquil pond, this charming 3-be... 

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$540,000
Provided courtesy of Carolina One Real Estate
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