Short Sale: Dear Mr. Lender...... Very truly yours,

This is a SAMPLE letter to send to lender in a short sale. Please note: It is important to send all the documents that the lender require to complete the short sale request package.  In addition to what they ask for, please remember to send all the information that you feel will help the lender get a clear picture of the condition of the property so they will understand the offer.  This will help them make a decision quicker in most cases and it will help in the approval process. DO NOT RELY ON BPO to give a true picture of the worth of the property.

TO:   Name of contact person for Loss Mitigation /Foreclosure / Short Sale or Default Department (depending on how the lender handles foreclosures)

FROM:   Rosemary Brooks - Real Estate Agent for (SELLER(s)) (give phone, fax and email)

RE:    Loan #, name of seller(s), property address, social security number(s)

Pursuant to our telephone conversation with reference to the above, enclosed pelase find the following documentation:

1. Copy of the signed Purchase Contract
2. Seller's estimated HUD, indicating total cost of selling
3. Current Comparative Market Analysis (make table of properties that may be listed higher and show why: upgrades, location, condition, etc.)
4. Property listing history (take this space to show listing date, price reductions (and why), total agent hits, mention Open Houses you've held and other marketing strategies you have used, days on market, etc.
5. Signed Authorization Letter from Seller
6. Copies of any and all inspection reports, including termite report and other costs for repair 

You will note in the offer that the buyers have been pre-approved with their lender of choice and are putting down 20% with a closing within 30 days.

In order for this offer to be accepted, it would be necessary for (NAME OF LENDER) to approve a total payoff on their loan in the amount of $__________.  Please review the Seller's HUD for the complete breakdown of the total cost of selling.

I understand that before responding to this offer, you would first need to order an appraisal on the property.  Therefore, if there is anything I can do to assist the appraiser to help speed up the process, please feel free to call me.

Should you have any further questions with respect to the offer or the property, please contact me directly.

Thank you for your assistance and consideration in this matter.  I look forward to hearing from you.

......I take this letter and turn it into a summary report on the property so that lender will have a picture of what is going on with the property.  Remember:  Do not rely on the BPO to cover all the basis, BPO are for the lender not necessary to show the defects and make any real comparison of other properties that may be higher due to upgrades, remodelling, condition, or location, that is something you will need to give to the lender upfront.

*************************************************************************************

HOT NOTES:

1. The lender will NOT begin the review until all the items that they request for a short sale is received.
2. After you send in the short sale package, it is wise to give a call to check to make sure they received the whole package that you sent to them and give them your contact information again.
3. You should also understand that additional information may be required before they can make a decision.  In other words, make sure that they have your contact information and that you return calls as you get them.
4. They do a thorough review of the information that you send them and they make a business decision based on the information provided.
5. This is worth repeating... DO NOT RELY on BPO to be favorable to your offer! Send them the information that will uphold the offer
6. The normal policy of response time is non-existence!  They seem to not be on a timeframe, and it differs with each lender.  However most will try to get back to you from 15- 30 days (and that could business days). 
7. They will usually not contact you until they have decided and some will not contact you then.

Good luck, hope this helps.  Any suggestions to add will be appreciated.