SHORT SALE CHECKLIST:

 

The following is a generic list of documents required by most lenders during the short sale approval process. This list will give you a good indication of the paperwork you must compile in order for your lender to consider our short sale request.

 

LETTER OF AUTHORIZATION

The Letter of Authorization is required by Lenders to confirm that they are authorized by their Borrower to release information and communicate with the facilitating party.

 

HARDSHIP LETTER

The Hardship Letter is the Borrower’s opportunity to outline why they need relief from their mortgage obligation. Please make sure the letter is legible—preferably one page typed.

*Please Refer to the Sample Hardship Letters Provided as a Guideline*
 

FINANCIAL STATEMENT

The Lender may want to review the Borrower’s monthly income/expense statement to determine the significance of the financial hardship. Your Lender may require the information on a specific form.

Regardless of the format required the financial information provided should be:

1) Only for the Borrowers on the loan.

2) Reasonable—if the amounts listed on the statement seem out of line the Lender might question the validity of the short sale request.

 

BANK STATEMENTS

The Lender may want to see two months of banking activity for all Borrowers on the loan. Please provide two months of statement for all non-retirement accounts, including bank accounts, brokerage, and mutual funds.

The statements must be:

1) As current as possible (may require updating during the short sale process)

2) Consecutive months

 

PAY STUBS

The Lender will require at least two months of pay stubs for each Borrower on the loan. If a Borrower has more than one job, pay stubs for all jobs should be included.

If the pay stubs are disability checks, these checks usually have no tax withholding. The Lender will want a copy of the disability “awards letter” that outlines the terms of the disability income.

 

TAX RETURNS

The Lender will require two years of tax returns for each Borrower on the loan. Please provide only Federal Tax Returns for the two most recent years. If a Federal Tax Return has not been filed for the last full year include your Taxpayers completed and signed Extension Form. Please include all pages and your applicable schedules for each tax return.
IF YOU HAVE MORE THAN ONE LOAN ON THE PROPERTY FOR WHICH WE ARE NEGOTIATING A SHORT SALE, THIS PROCESS WILL APPLY FOR EACH LOAN.
 

* Charleston Real Estate Professional and its members are licensees that specialize in selling and buying real estate. This site and the information in it are provided only as a tool. We are not lawyers, CPA’s, estate planners nor financial experts and cannot give any advice outside our scope of expertise. You are encouraged to seek council and advisement from a professional of your choice.