My Experience with Short Sales & Summary or Required Documentation

Real Estate Agent with NEW CENTURY REAL ESTATE, inc


I am currently invovled with several properties that are considered short sale properties.  Because the debt on the house is higher than the market value and the owners are having trouble making their payments the lenders might consider taking less than what is owed on the property.  Sometimes the bank will wait for the property to go to foreclosure if low offers are coming in during the short sale listing period.

These short sales can be complicated and take a lot of time preparing documentation and communicating with the banks involved.  Each bank has its own set of documents it requires but for generality purposies here is a list that might be asked of a seller and buyer:

Seller:                                                                                    Buyer:

Fully executed purchase contract                                            Purchase Contract

A Hardship/ explanation letter                                               Pre-Approval Letter

2 years w-2's

last 2 months bank statements

last 2 paystubs

Tally of closings costs and settlement statement

Listing agreement

Broker Price Opinion or Comparative Market Analysis


Ususally a full package is required prior to sumission or the waiting period will likely be extended.  Part of my job is to see that all these documents are complete and the lines of communication with the banks are open and clear.

Sometimes properties have more than one loan which can comlicate the process by negotiating with both banks to find a happy medium with everyone.

 This Short Sale Market will likely be with use for severall years so it is a good time for buyers to capitalize on some affordable housing.


Please calll with any questions you may have or if you would like to meet about your real estate needs.



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Matthew J Blum - (retired from the business)
Palm Beach Gardens, FL
Bill, Great post. Short and sweet and to the point. I get phone calls like this all the time. I tell people lenders are not going to agree to a short sale just because you don't want to pay.  You need to be able to prove to them you can't  pay
Feb 21, 2008 02:03 PM #1
Mott Kornicki
• Waterway Realty, Realtors® • Broker • South East Florida • - Miami Beach, FL
Waterway Realtors, Notary Public

I've experienced several situations and heard of many others;

  • Short Sale Won't Be Approved if it's an Investment Property. (It was approved)
  • The Lender Won't Agree To Such A Low Price... (It was accepted) 
Feb 21, 2008 02:24 PM #2
Paul Moye
Benchmark Realty - Franklin, TN
Broker, GRI, SRES
preliminary HUD-1 and title search / lien search to show bank this is the real #
Feb 21, 2008 03:08 PM #3
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Bill Carmichael

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