The Short Sale Package

How to Prepare a Short Sale Package

Before any mortgage company, bank, lender, or credit union will consider a borrowers proposal they will be required to submit a lot of documentation. This documentation is commonly referred to as the short sale package. An experienced short sale real estate agent will help the seller in the preparation of all the short sale package. Each investor will have their own list so it is best to get the list directly from the investor.

The documentation may seem overwhelming, however your short sale agent will help you with the packaging and documentation.

  • Cover Letter or Check list
    This is just to help keep things organized and easy for the bank.

  • Authorization to Provide and Release Information
    This is usually specific to the lender. They will provide one for you.

  • Hardship letter
    The hardship letter will explain why you are asking the lender to take less than what they are owed. Some tips can be found here How to write a short sale hardship letter. Don’t forget to include supporting documentation that can prove your hardship.

  • IRS Form 4506-T
  • Proof of Occupancy
    This could be a recent utility bill sent to the home with your name on it. If the home is not owner occupied be prepared to send rental agreements and information on your primary residence.

  • Financial Information
    2 years w2′s
    2 months pay stubs
    2 months bank statements
    or the last two years of tax returns if you are 1099 or self employed

  • Repair Estimate for the property (If any)
  • Comparable sales for the property (provided by your real estate agent)
  • Contract for the sale of your home
  • Net Sheet (provided by your real estate agent)
  • Listing agreement
  • MLS history of listing (provided by your real estate agent)
  • Estimated HUD (usually provided by title company)
  • First mortgage holder may ask for a payoff amount from the 2nd
  • Second mortgage holder may ask for a payoff amount from the 1st
  • Lender may ask for an Initial Title Report