When it comes to submitting a short sale offer to the lender, the paperwork required is just about the same for every bank. Make sure that your short sale package is complete and organized and you will find that the bank’s are easier to work with
Hardship Letter
Approximately one (1) paragraph long briefly explaining why the homeowner is unable to pay the mortgage. This must be signed and dated by the homeowner.
Financial Form
The bank’s Financial Form must be used. This document is a financial accounting of the homeowner’s monthly income and expenses. All expenses should be included regardless of whether the homeowner is currently paying them or not. The bank will not consider a short sale if income exceeds expenses. This must be signed and dated by the homeowner.
Pay Stubs
Copies of two (2) most recent paystubs.
If the homeowner is unemployed, they will need to write a separate note indicating they are unemployed and the approximate date the unemployment began. This must be signed and dated by the homeowner.
Bank Statements
Copies of two (2) most recent bank statements (checking & savings account).
If the homeowner does not have a bank account, they will need to write a separate letter indicating as much which must be signed and dated.
Tax Returns
Copies of previous two (2) years tax returns (including all schedules).
If the homeowner has not filed their taxes, they will need to write on a separate note indicating as much which must be signed and dated.
Listing Agreement
The listing agreement must be up to date and accurately reflect the commission listed on the estimated HUD
Purchase Contract
This must be signed and dated by both buyer and seller
Estimated HUD
The estimated HUD should include all closing costs. Project out 2 to 3 months as it will take at least that long to actually close
