What is required from the borrower (seller) to complete a short sale?
All of the documentation needed to start a short sale is commonly called a “Short Sale Package” and is usually submitted by the investor interested in the property, the agent representing the seller, or the seller of the property. The package usually includes the following items:
Sample Short Sale Package (items may vary depending upon the lender):
- Authorization to release Information
- Sellers hardship letter plus supporting documentation
- Seller’s financial information – this is usually a bank specific document
- 2 years tax returns
- 2 months pay stubs
- 2 months bank statements
- Repair estimates on property
- Comparable sales
- Sale contract
- Estimated HUD statement
- Mortgage statements for all liens
- Listing agreement
The best strategy in successfully completing a short sale is to be prepared in advance. Supplying all of this documentation up front makes the short sale process easier and more likely to be successful.