Can somebody tell me what documents do I have to include in a short sale package?


What do I need to do to complete a short sale? What do I need to do?

asked August 24, 2011

6 Answers


From Seller:
Hardship Letter
1126 Form
4056-T Form
Last 2 months paystubs (if receiving unemployment, provide those stubs)
Last 2 months bank statements (for all bank accounts), all pages, even if blank
Last 2 years tax returns, with all W-2?s, if self employed, provide year-to-date Profit
and Loss
Most recent mortgage statement (for all mortgages on the property)

From Listing Agent:
Fully executed Contract of Sale
Pre-approval letter for Buyer, copy of deposit check and buyers drivers license
Listing Agreement and MLS printout

From Third Party Assisting (i.e Attorney):
Attorney Authorization
Estimated HUD-1


The Short sale document requirement is similiar, but not identical with all banks. It’s beneficial for you to go to your bank’s website page and click on the tab which indicates Short Sale Documents or Requirements.

By actually following your bank’s document instructions – you will create the exact historical document package required by your lender for your loan.


You can download most bank short sale packages on – here is the link:


For a complete list of the forms needed go to our web site and click on the tab to your left titled “Documents.” Please note some banks now have their own forms to complete. You will find several bank Short Sale Packages at this location.


The mortgage companies will ask for simialr information but each has their own forms. When I go to the listing appointment I usually take my own typed Authorization form for the seller to sign to let the mortgage company talk to me. I usally ask the seller to contact their mortgage company and request a short sale package. I have also called for it once I have the listing. I have also gone on line to the particular mortgage company site to get the forms.
I explain to the sellers that the paperwork involved will make them feel like they have been turned inside-out. We are trying to show they cannot qualify for the mortgage they have. Once they understand why there is so much paperwork it usually helps me get the package from them faster.


It depends on the investor requirements. Most lenders will require 2 years federal tax returns 1040′s with all schedules, 2 months bank statements (all savings, checking, investment accounts), 2 months verification of income (unemployment, retirement, wages etc), A completed financial work sheet (some are lender specific), A hardship letter, Listing agreement, fully executed purchase contract, estimated HUD 1, picture of asset, verification of funds and approval letter from buyer to submit to lender. Form 4506-T, Dodd Frank certification, and the agent authorization to release convey information.

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