I know that lots of you are already aware of this, but I just want to post for those less familiar with short sales.
Whether you are a listing agent negotiating a short sale or a seller getting ready to venture down the short sale road, it is important to know what is and/or will be required by the lender (or lenders if you have two loans). First off, the bank(s) will always require a complete package. If you do not submit everything on this list, you will not get very far. So, it is best to cooperate and submit the complete package the first time–doing so will save you hours of headache later on.
Here is what you need (it hardly ever varies from lender to lender–although some lenders may have their own forms for some of the items listed)
- Authorization (letter authorizing whomever is negotiating the short sale to speak with the bank on the borrower’s behalf)
- Financial Statement (visit my website and log in as a new member and you can download a blank financial statement for the borrowers to complete)
- Hardship letter (guidelines for drafting this are also available on my site in the member section)
- 2 months bank statements
- 2 years tax returns
- 2 recent pay stubs
- Listing Agreement
- Purchase Contract
- Estimated Settlement Statement (HUD-1) (check out my blog on how to prepare one of these)
It can be difficult to pull together this package, especially if you have many borrowers because the entire package is required for each borrower on the loan.
However, I guarantee you that if you send the short sale package to the lender correctly the first time, you will save yourself from a world of trouble down the road!
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