Many homes are sold as a short sale every day. As part of those short sales, there are numerous documents that are needed. There is nothing short about a short sale, they take time to process, they take a lot of documents and are very time consuming for the parties that are working the short sale.
Why do I need these documents?
Documents make or break a short sale. If they aren’t right then a short sale can be denied and the homeowner is left to start the entire process over. The reason some many documents are needed is simple. At 2ShortSaleGuys, we explain it like this to our clients about documents;
“You have agreed to pay the mortgage lender a preset amount of money for your home, you have unfortunately had circumstances arise that you are unable to pay the debt as agreed so you are showing the mortgage lender that you do not have the ability to pay the debt as agreed.”
Typically when I explain it in that manner, they are understanding of the the reasoning and get the documents promptly.
What documents are needed and why?
There are several documents needed to facilitate a short sale, the list below are the general documents needed. Some lenders have specific documents that are sent after the short sale request has been made.
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2 consecutive years of tax returns |
They want to know how much household income is being brought into the home. |
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60 days of bank statements |
They want to see what money is being deposited and what money is being spent each month. This typically is matched up with your financial affidavit. |
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60 days of income (Pay Stubs) |
They want to see what income you are bringing in to the home. |
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Hardship Letter |
This is your plea to the mortgage lender as to why you need to do a short sale and why you are unable to currently make your payments or in the immediate future why you will be unable to make your agreed upon payments. This is one of the three most important documents of the short sale. |
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Financial Affidavit |
This is a worksheet that shows your “budget”, what you have coming in and what you are spending your money on. This is one of the three most important documents of the short sale. |
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Third Party Authorization |
This allows the facilitators of your short sale to speak to the lender on your behalf. This is one of the three most important documents of the short sale. |
There are other documents needed, listed above are the most important documents and why mortgage lenders ask for these along with other documents.
At GaRealtyGroup | 2ShortSaleGuys, we will not list your home until we have all documents in our package completed and verified. We do this simply because we have a very high success rate of getting the home under contract quickly. If we list your home and then are trying to get documents from you and we get an offer, the time clock begins running for the mortgage lender. When they request documents, we typically have 48 hours to respond with those documents or they decline the short sale and we have to start over from scratch.
Hope this has helped with the understanding about the documents needed to short sale a home. We have a team of dedicated personnel that would love to answer your questions about short sales. You can request information about short sales or other real estate related information by clicking HERE
Are you interested in buying a home, short sale, foreclosure property or investing? Click HERE for more information and you will have the ability to contact us as we would love to assist you in your buying needs.
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