Preparing For a Short Sale

Short Sales are not your typical 'list it, sell it' transactions. Because your lender is agreeing to allow you to sell your home for less than what is owed, they are going to want some significant documentation that there is good reason for them to do it. The requirements vary, but in general - the documents listed at right are going to be required in any Short Sale transaction.

These documents are SO crucial for the successful completion of a short sale that we do not even schedule consultations until potential sellers have gathered the first four items. As a Short Sale seller, it's imperative that you under your full committment to the process is required, and that when additional documents are requested, it is incumbent upon you to provide them as quickly as possible.

That being said, where normal transactions generally close in 30-45 days, a typical Short Sale can take anywhere from 60 days to several months to close and fund. Short Sale's are not a race, they're a marathon.

What Information Will I Need?

• A hardship letter written by the homeowner explaining why you can no longer fulfill you obligation to the bank and signed by all persons party to the mortgage.
• A personal financial statement detailing current income and expenses and demonstrating a decline; signed and dated by all persons party to the mortgage.
• Proof of Income, including W2's and a bare minimum of 30 days of paycheck stubs.
• Federal, State and Local Tax records and/or returns for the previous two calendar years.
• Signed and executed Listing Agreement between the homeowners and Listing Agent as well as all addendums required for the property and/or community.
• Executed purchase contract for the property including buyer’s proof of funds, prequalification letter, and all addendums required for the property and/or community.
• Preliminary Settlement Statement provided by a Title Company agreed upon by both the Seller and Buyers.