Short Sale packet for the seller:
The process of a short sale can seem very overwhelming to the seller of a property.
A short sale process can be trying and difficult. As follow we have collected a few useful information which makes the process easier and gives a better understanding about the documentation you will have to provide to your Realtor and the Title Company for the negotiations with your lender and in order to guarantee a smooth transaction for all parties â€žBuyer & Sellerâ€œ. Of course a short sale transaction is not only depending on the sellers documentation provided, but also in the responsibility of the Bank.
First at all, please choose a Realtor who experienced already a few successful short sale transactions. It is important that your Realtor knows the exact steps to submit a short sale package and follows through. Also every Realtor who successfully closed a few transactions has a short sale packet on file.
The following documents are necessary in order to proceed with a short sale transaction:
Sellers complete contact information, social security #, lenders contact information, loan number etc.
Authorization for your Realtor & Title Company to release information.
Sellers hardship letter, explaining to the lender the hardship that has caused
the short sale to be necessary.
Most recent pay-stubs for all borrowers' on the loan. If seller is not employed an unemployment letter needs to be submitted, that is signed, dated and explains how the seller is paying for all other expenses.
3 most recent bank statements, for all accounts, with all pages.
2 most recent tax returns with 1040 form, schedule and copies of all W-2 forms.
Signed and dated listing agreement, MLS detail information and price information â€“ provided by listing agent.
6 comparable properties (3 actively listed and 3 sold) - provided by listing agent.
Signed and dated sales contract submitted at time of submitting offer â€“ provided by listing agent.
Estimated HUD settlement statement â€“ provided by Best Title Solutions, Inc.
Buyers' pre-approval letter â€“ provided by buyers' mortgage lender or proof of funds from buyers' banking institution if offer is submitted as a cash offer â€“ provided by buyer.
Please note: If there are 2 mortgages on the property, all documentation must be submitted to both lenders, and both lenders need to be aware of each other in the negotiation process.
The applicable loan numbers need to be on the bottom of every page for documentation that it is submitted to the lender.
Short sales are not always a quick process if the short sale negotiations take longer than 45 days most lenders require that the seller re-submits updated financials to be within the last month. Please be sure that you are prepared to do so as any delay in submitted information needed, will delay the final approval from the short sale lender.