Short Sale Package Requirements

Lenders and banks require what is called a “short sale” package to be submitted in order to request a short sale from them.  This package is always made up of financial information from the seller/borrower and information about the offer that the buyer is presenting.   In our experience, lenders will not approve or even consider a short sale without full disclosure from all parties involved.  Failure to disclosure and share your financial information to the lenders with whom you are requesting a short sale from will always result in the lender discarding your request.  Most, if not all lenders, have set up screening departments whose sole purpose is to verify that all the requested information is present in the short sale package.  Your request will never make it past this departemnt without being complete.  Even a missing signature on one of the required documents might result in your short sale never making past this department.  Many lenders will continue with foreclosure proceedings even with offers on the table due to incomplete packages.

Here is a typical list of documents required from a seller as part of this “short sale” package.  Each lender has specific requirements so be sure to check with your lender for the most accurate information.

1.)     Last two (2) years signed tax returns

2.)     Two (2) most recent bank statement

3.)     Two (2) most recent pay stubs

4.)     Signed and dated hardship letter

5.)     Personal Financial Statement

6.)     Third-party Authorization

Additional documents such as a purchase and sale agreement, listing agreement, preliminary settlement statement, buyer’s pre-approval letter will also be required.