The Short Sale in Greenville County South Carolina is a series of articles for sellers and buyers to better understand what a short sale is and how to proceed with closing with a short sale. In order to understand where we are at in the series please read part 1.
Just because you own a house in Greenville County South Carolina and you have found out that you owe your lender more money than what a buyer is willing to pay for your property does not mean you are going to be able to just sell your house for less than what you owe your lender.
You must pass the Hardship Test. The Hardship Test: Ask yourself these questions and look at your situation to see if it will pass the hardship test.
Now each short sale request is looked at individually. Each situation is different. But you must be able to prove there is a hardship.
What is NOT a hardship?
If you have used your house as you ATM machine and took all your equity out of your house and are now in debt, that is a hardship that is going to have a tough time being accepted. It is recommended that you do what you have to do to keep your house.
If you bought your house at the top of the market and now it is worth less than what you paid for it, that is not a hardship and not a reason to sell your house as a short sale in Greenville County South Carolina.
The Asset Test:
If you have these types of assets your lender is not going to take all the loss and not have you bring some money to the closing table. They will only accept the short sale if you are contributing as well to the loss. You may be able to negotiate the loss with your lender.
The Fraud Test:
Any mis-statements are going to be checked out by the lender. They will match up what you are now saying to your application when you applied for the loan. If there is a big difference, you better have a very good explanation of the change. Losing your job obviously is a reason for the drastic change in income.
We will not list your property as a Short Sale In Greenville County if you committed fraud because you will be required to turn in a short sale package which we help you put together and send to the lender along with an offer exposing the fraud which may have serious legal implications to you.
The next post in this series of Short Sales In Greenville County will cover the documents that you are required to provide in the short sale package. So stay tuned for Part 3.
Disclaimer: This post is not intended to be or to provide legal advice. We recommend that you speak to your attorney and your tax accountant regarding specifics and to find out if this is the best option for you in your situation.
Contact Steve L. Hall, Realtor®, of Realty Direct. Licensed Realtor® in South Carolina at 864-640-3118 to list your property for sale or to purchase a property in Greenville, Greer, Mauldin, Simpsonville, Taylors, Travelers Rest, Fountain Inn and the rest of Greenville, Laurens, or Pickens County South Carolina. We accept referrals.
The information provided herein is supplied by several sources and is subject to change without notice. Homes Around Greenville Blog does not guarantee or is any way responsible for its accuracy, and provides said information without warranties of any kind, either express or implied. Entries on Homes Around Greenville Blog represent the opinions and ideas of the author(s). Homes Around Greenville Blog does not express the views of Realty Direct, Inc or those of the broker in charge.
Chances are that if you live in Greenville County South Carolina you have heard the term "Short Sale"
The Short Sale in Greenville County South Carolina is a series of articles for sellers and buyers to better understand what a short sale is and how to proceed with closing of a short sale.
You may have heard about them from the news media or from your friend or your neighbor or even one of your family members. We will go through important information that you need to know before you buy or sell as a short sale in this series. This is part 1 of the series.
We will be going through some important matters regarding short sales in Greenville County South Carolina that you should understand whether you are buying a short sale or selling a short sale. In both instances, you must have patience.
What is a short sale?
Just as there are many different lenders there are many different policies governing the short sale procedures. The lenders all have their own criteria of what short sales they will accept. Just because your house falls in this category does not mean that every house will be approved for a short sale.
The next thing to understand for both sellers and buyers is that a short sale takes time. There have been some short sales in Greenville County that have taken as short as one month to others that have been taking over 3 months to just get to the person at the lender who can make that decision. It is not just simply sending some documents and that is it. There are formulas that lenders use and not all lenders use the same procedures or formulas.
Some lenders outsource their short sales to a company that is proficient in the business of negotiating short sales. In these situations the lender gives the company a bottom line that they will accept, basically that is how much they are willing to lose to do the short sale.
And if you have mortgage insurance on your loan then the mortgage insurance company will also have to approve the short sale. In this situation, the mortgage insurance company will pay the lender the difference in the loss. Often, the mortgage insurance company will want the seller to take back a note for some of the loss and pay some of that loss back to the mortgage insurance company.
The lender who you are sending your house payment to every month may own the note or they may just be a servicer for the lender. If they are the servicer for the loan there is an additional amount of time in the short sale process since there is yet another entity with whom the short sale will also need to be approved by. This happens a lot in situations where your note has been sold several times in a short period of time or when the lender holding the note is an investor. The investors must approve the short sale in this situation.
If you have a first mortgage and a second mortgage with different lenders that will certainly complicate matters more and puts a kink into getting the short sale approved since the second note holder will want something to accept the short sale and usually the first note holder offers a mere token to the second note holder however you will need the approval of both lenders in order to close and pass a clean title to a buyer. Sometimes the second note holder will accept the sale if the seller agrees to owe a note to them and pay for some of the loss. Why would a lender want to do a short sale in Greenville County in the first place?
Not every homeowner is qualified to do a short sale in Greenville County South Carolina and we will cover the criteria in the next post in this series: Short Sales In Greenville County South Carolina. So stay tuned...
Disclaimer: This post is not intended to be or to provide legal advice. We recommend that you speak to your attorney and your tax accountant regarding specifics and to find out if this is the best option for you in your situation.
Contact Steve L. Hall, Realtor®, of Realty Direct. Licensed Realtor® in South Carolina at 864-640-3118 to list your property for sale or to purchase a property in Greenville, Greer, Mauldin, Simpsonville, Taylors, Travelers Rest, Fountain Inn and the rest of Greenville, Laurens, or Pickens County South Carolina. We accept referrals.
The information provided herein is supplied by several sources and is subject to change without notice. Homes Around Greenville Blog does not guarantee or is any way responsible for its accuracy, and provides said information without warranties of any kind, either express or implied. Entries on Homes Around Greenville Blog represent the opinions and ideas of the author(s). Homes Around Greenville Blog does not express the views of Realty Direct, Inc or those of the broker in charge.
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