Documents required to process a short sale are commonly referred to as a “Short Sale Package”. These documents are submitted by the agent representing the seller.
Here’s a sample short sale package:
Note: items may vary depending upon the lender.
- Cover Letter.
- Authorization to Release Information (allows seller's agent to work on their behalf and obtain information).
- Seller's Hardship Letter (some banks will supply one to be filled out on their website, check your banks website).
- 2 years W-2′s (for each seller).
- 2 years tax returns (for each seller and must be signed and dated or a copy of efile must accompany).
- 2 months pay stubs (for each seller).
- 2 months bank statements (for every bank account and every page for each statement).
- Statements from all retirement accounts.
- Copy of the front and back for drivers license (for each seller).
- Supporting Hardship Info – HOA liens, medical/disability statements etc.
- Repair Estimate for the property (when necessary).
- Comparable area sales (when needed provided by agent).
- Listing & Purchase Contract(s) (provided by agent).
- Net Sheet or often called a preliminary HUD (provided by agent).
- First mortgage holder may ask for a payoff amount from the 2nd (obtain pay-off statement from lender).
- Second mortgage holder may ask for a payoff amount from the 1st (obtain pay-off statement from lender).
- Lender may ask for an Initial Title Report (provided by agent).
- VA and FHA may have their own forms and special requirements as well.
- 4506-T you can find here or your agent should be able to supply one.
- Dodd Frank Certificate you can find it here or your agent should be able to supply you with one.
- Depending on what type of short sale you are doing some programs will require your most recent utility bill.
- Some banks will require it and I always recommend (so banks do not misplace paperwork) to put your loan numbers for each mortgage in the upper right hand corner of every page and sign the bottom of every page.
If you plan on working with a real estate agent and you can have this information together for them at the time of your listing this will give him/her a head start. If you are considering programs such as a HAFA talk to your agent about applying prior to putting your house on the market.
Guidelines and items are subject to change. Please call your bank for a list of updated items.