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.
- Have you lost your job since you bought the house?
- Did you have a bad accident or illness in which you got hurt and could not work?
- Do have large new medical bills that you incurred since buying the house?
- Have you been relocated to another city or state?
- Has your interest rate gone up so much that it is now a hardship for you to pay your mortgage?
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:
- Do you have money in CD's and Savings Accounts?
- Do you have equity in other properties?
- Do you have stocks and bonds?
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:
- How much money you were making?
- Where you worked?
- What your assets were?
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 Keller Williams Realty. 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 love to accept you referrals.
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