What Is A Short Sale?

If you financially are unable to make payments on your home and cannot sell the home for what is owed, we can help. Short Sales are very common in today's market. We can list the property for market value or below market and negotiate with your lender to bring down the mortgage amounts. Your credit will be effected; however, it will not effect it like a foreclosure would.

Short Sale Checklist – Information Gathering

When attempting a short sale you will need to compile the following information when creating the proposal packet.

Financial Information

  1. Three most recent bank statements for all checking accounts for all borrowers
  2. Three most recent bank statements for all savings accounts for all borrowers
  3. W2s from the past two years for all borrowers
  4. Income tax returns from the past two years for all borrowers
  5. Past three paycheck stubs for all borrowers
  6. Copies of all bills for all borrowers from the past two months. Will be used to compile a financial worksheet. Could include:
  • Automobile loans
  • Alimony/child support
  • Child care bills
  • All credit card bills
  • Electricity bills
  • Gas bills
  • Water/Sewage bills
  • Home telephone bills
  • Cell phone bills
  • Cable bills
  • Automobile insurance
  • Health insurance
  • Life insurance
  • Doctor bills
  • Dentist bills
  • Pharmaceutical drug bills
  • Food/Groceries
  • School lunches
  • Gasoline (auto)
  • Student loans
  • Other loans
  • Other bills

Hardship Information

  1. Hardship letter that describes succinctly yet persuasively why the homeowner was unable to meet his or her loan payments. The homeowner must write the hardship letter.
  2. Documentation of hardship. Documentation may include:
  • Hospital bills
  • Doctor bills
  • Home repair bills
  • Documentation of unemployment
  • Documentation of incarceration
  • Death certificate
  • Divorce decree
  • Other documentation

Property Information

  1. Information about any additional liens on the home. The homeowner may have this information. Ask the homeowner if he or she has a recent credit report. Alternately, a present owner search would reveal whether there are any additional liens.
  2. Recent Comparative Market Analysis (CMA)
  3. Estimated HUD-1
  4. Estimates for any necessary repairs to the home.
  5. Most recent property tax bill and proof of payment status
  6. Proof of homeowner’s insurance coverage

Lender Information

  1. Monthly statements from the first and second lenders
  2. Name of supervisor in Loss Mitigation department
  3. Direct phone number for Loss Mitigation department
  4. Short sale application from the lender
  5. Written authorization from the homeowner for the Realtor to speak on his or her behalf

Other

  1. If homeowner filed for bankruptcy, name and number of bankruptcy attorney
  2. If homeowner is in a law suit, name and number of attorneys