What is in a Short Sale Information Packet?
A Short Sale is the agreed upon sale of your home with the ending sales price being less than the amount you owe on the mortgage.
If you are a homeowner in distress, if you have lapsed on your mortgage payments, or cannot afford to make your payments then it is important to contact or your lender immediately. It is essential to work with a local licensed real estate professional and an attorney who can protect your rights and help you find the right options during the process. If you are in Central New Jersey, I can provide you with guidance and refer you to the best lawyers.
My negotiating success in short sales comes from preparation. That is why it is so important to have a complete Short Sale Package.
Each lender has their own specific package of documents, below are the preliminary documents you should be prepared to provide:
Hardship letter. A hardship letter is a written statement as to what consequence has caused you to fall behind on your mortgage. Examples of hardship are:
c) Medical emergency / sudden illness Bankruptcy
A signed Authorization to represent form(s) for each lender (Lenders typically do not want to disclose any of your personal information without written authorization to do so.)
Copies of all legal notices you have received from your lender and copies of Mortgage Statements
A completed Income and Expense Form or Lender Specific Financial Statement (Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value.)
Last 2 years of your Tax Returns
Bank statements for the last two months
Your last two paycheck stubs
Verification of any other source of income
An Accepted offer on your home (provided there is one)
If the lender discovers assets, the lender may not grant the short sale because the lender will feel that the seller has the ability to pay the shorted difference.
Keep in mind that all banks have different guidelines/timelines when it comes to the short sale process.