Short Sale Package
All Lenders will require that a Short Sale Package be submitted to begin the short sale process. Lenders may have different requirements – here is a sample list of items needed for the package:
- Sellers Hardship Letter – Must be handwritten
- Authorization to Release Information for the party handling communication and negotiations with
the Lender
- Financial Statement
- Copies of mortgage statements
- Last two years tax returns
- Last two months pay stubs
- Last two months bank statements
- Supporting Hardship information – HOA liens, past due real estate taxes, medical/disability
statements, etc.
- Broker Price Opinion which I will prepare for your property
- Copy of Real Estate Contract and Addendums
- Any other information that you would like the Lender to consider
Handwritten Hardship Letter
The hardship letter is used to explain your need for a short sale to the Lender.
Sample hardship reasons:
- Unemployment
- Reduction in income
- Separation or Divorce
- Medical bills
- Illness
- Death of a spouse
- Mortgage payment increase
- Job relocation
- Incarceration
- Other – must specify
Sample hardship letter:
SAMPLE ONLY – PLEASE WRITE THE LETTER IN YOUR OWN WORDS
Credit Consequences of a Short Sale
It is the general belief that a short sale will appear on your credit report as “settled for less than amount owed”. A short sale can lower your credit score by 80-100 points. There is also a possibility, through negotiations with your Lender, that you can avoid having the short sale reported to the credit agencies. Our team will do our best to negotiate this with your Lender.
