Typically Required Paperwork- Short Sale

I will now discuss the typically required paperwork for a short sale.  I will preface this with the following:  After much time, study, and experience, this list is typical for short sales.  Some lenders will require more, some less, and some will even require you to use their paperwork. 

We supply each property owner with a check list of the required paperwork.  The reason for this action is two (2) fold.  1) To let the property owner know this list has been produced with much thought, care, and professionalism.  2) To show that we will NOT start the short sale without every item on the list. 

Following is the list, with explanations for each.

1)       Hardship Letter- This letter is the chance for the property owner to express to the Lender(s) how this problem started, moved into the place it is today, and where the property owner sees themselves from here.  Please do not use abusive language, is expressed to each client. Assistance can be provided if needed.

2)      Financial Worksheet- This is a monthly financial statement.  The document shows the Lender(s) how much money comes into the household and also all the bills.  This will defiantly convey to the Lender(s) your inability to pay the mortgage.

3)      Tax Returns- The last two (2) years are required.  All pages are requested, to include the signature page.  If you have not filed taxes, a letter to state this is required.

4)      Pay Stubs- We will need the last two (2) pay stubs.  This will verify the income on the financial worksheet.  Any type of assistance programs will also need to be included.  If you have no pay stubs or are currently unemployed, simply write a letter stating this factor.

5)      Bank Statement- The last two (2) months are required.  This will verify the statements on the financial worksheet and also shows that there are not large sums of money setting in an account.  If you do not have a bank account, simply write a letter stating this fact.

6)      Authorization to Release Information- This is the only way for us to contact the lender.  Without this document, we can’t start the process.  We will need a separate letter for each mortgage.

7)      Contract- This is the purchase agreement. 

We have each client sign the check list once they have gathered all of the required paperwork.  We also give the client the assurance that all of these documents will be properly destroyed upon closure of the transaction.  With written request all documents will be returned. 

We offer assistance to any client that needs it to gather the documents.  We also put a timeline on how long we will await.  We typically allow 2 weeks.  This is ample time.