Columbia, SC Real Estate & Homes Short Sales

IF you live in the Columbia, SC area and are considering a real estate short sale or are simply wanting to find out about short sales, here's an abbreviated explanation.  Of course, if you want specific help, please contact us immediately.  A short sale is a way to avoid foreclosure and/or bankruptcy.  It may have an impact on your credit for up to 2 years, but is significantly less than the impact of a foreclosure or bankruptcy (often 5-7 years or more).

1. Lock Box - We will hang an electronic lock box for showings - if permitted. The lockbox is a computer and provides data to us for following up with agents who show the property. We find a lockbox more than doubles the showings than a property without one.
   
   
2. MLS - We will have your property live on the MLS as soon as possible after receiving the listing. If we are unable to get pictures during that time, due to property preparation, we will have to do a written exclusion of the MLS. We encourage you to prepare your home in advance and work with a photographer on scheduling.  If you allow a lock box, you will not need to be present for the photos.  A professional style ad will be written, 9-25 pictures will be featured, and a link to a virtual tour will be provided.
   
   
3. The marketing plan - All shortsale listings are put on a plan from the day their listing is live on the MLS. This plan includes the weekly updates, internet marketing, and price reductions. This plan is designed to generate an offer within 6 weeks of a live listing. You will receive change orders that require your signature in order to reduce the price.
   
   
4. The Offer - SC Real Estate law requires us to present you with all reasonable offers.  We will explain the offers, what they entail, and what they mean to you.  You will have the right to accept, counter, or reject all offers.  Our goal is to obtain an offer that proves to the bank that it will be more expensive for them to foreclose than to accept the loss on the provided offer.  If the offer is too low, we will need to counter or reject.
   
   
5. The Property Status - Here is the tricky part. Once you accept an offer, the board of Realtors REQUIRES us to list your property as "contingent" or "pending" in the MLS.  This shows other Realtors that your property has an offer.  If a buyer hires a Realtor to look up active properties, your property may not show up on their report.  This is required to prevent sellers from wasting the time of buyers who would otherwise assume your property is available. We are permitted to continue marketing your property in other ways, just not as ACTIVE in the MLS.  It is only the Multiple Listing Service that requires us to list your property as contingent.  During this time we are permitted to receive other offers and send them to the bank as well.
   
   
6. Due Diligence - Due diligence is the process where the buyer investigates everything they need to know, in order to make an educated a decision about the condition and whereabouts of the property.  This includes HVAC inspection, Termite inspection, home owner's association's amenities and regulations, and property inspections.  The length of due diligence is determined in the contract and is typically 7-10 business days.  After the due diligence process is complete, only finance contingencies or the Sellers failure to perform (honor the contract) would entitle them to a refund, unless otherwise agreed upon in the contract.  In a "normal" transaction, due diligence would begin on the date the contract is accepted by all parties.  In a shortsale transaction, due diligence (unless otherwise stated in the contract) begins upon written bank approval of the short sale financing contingency.
   
   
7. The Timeline - It can be as short as 45 days with an agreeable bank and a willing, patient buyer.   The entire process typically takes 90-150 days.
   
   
8. The Offer - SC Real Estate law requires us to present you with all reasonable offers.  We will explain the offers, what they entail, and what they mean to you.  You will have the right to accept, counter, or reject all offers.  Our goal is to obtain an offer that proves to the bank that it will be more expensive for them to foreclose than to accept the loss on the provided offer.  If the offer is too low, we will need to counter or reject.
   
   
9. The Closing - This is the best part. Once the acceptance from the bank is handed down, the HOA (home owner's documents) package is approved, and the due diligence is completed, the buyers & sellers are brought into the Attorney's office to sign off on all documents. The buyer's funds are then deposited (usually within 24 hours - 72 hours of signing), the deed is recorded, and you are done. You must vacate the property usually immediately following closing.  In our experience, it is best to vacate the property 48 hours prior to closing (provided both parties have signed).  This allows the buyer to complete the walk through on a vacant property.  This is not required, just suggested.  We suggest you have all utilities scheduled for shut off on the next MONDAY after closing.  This way, if there is an extension for any reason, you are not stuck in the property with no power, gas or water.  Please remember to forward your mail to your new address.
   
   
   

Now, here's what to expect from a short sale on your credit:  

A short sale will have a lesser impact on your ability to re-establish your credit history than a foreclosure or bankruptcy.  See below:

Here is a summary of Fannie Mae loan policies that went into affect on August 1, 2008.  This represents the time period that must elapse before borrowers can demonstrate they have reestablished an acceptable credit history after the occurrence of the bankruptcy or foreclosure. 

2 yrs - Pre-foreclosure Sale (a.k.a. Short Sale)

2 yrs - Bankruptcy Chapter 13 (reorganization) - case discharged (completed)

4 yrs - Bankruptcy Chapter 13 (reorganization) - case dismissed (not completed)

4 yrs - Bankruptcy - All others, not Chapter 13

4 yrs - Deed-in-Lieu of Foreclosure

            ADDITIONAL REQUIREMENTS up to 7 yrs after

                - The greater of 10% down payment or minimum down payment required

                - Limited cash-out refinances

5 yrs - Multiple Bankruptcy Filings

5 yrs - Foreclosure

            ADDITIONAL REQUIREMENTS up to 7 yrs after

                - Min 10% down payment and credit score of 680           

                - No second homes or investment properties

                - Limited cash-out refinances, but only if eligibility requirements

Columbia, SC Real Estate & Homes Specialist.  Whether you are considering buying, selling, or investing, we can help you with all of your real estate needs.  Our search tool provides you the most comprehensive look into listings currently available throughout the Greater Columbia market. 

Jae Kim, Realtor^®
Owner & Broker-In-Charge
Member, Council of Residential Specialists
Multi-Million Dollar Producer

EXIT Real Estate Solutions
216 Eascott Place
Columbia, SC 29229

803-834-7444 (Office)
803-348-3052 (Cell)

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