What the Bank Needs to Know for a Short Sale! Mission Viejo, Specialty!

The sellers' submission package should include W-2 forms from employers (or a letter explaining the seller is unemployed), bank statements, two years of tax returns, and other financial documents outlining income and debt obligations. The bank will also need comps or a broker's price opinion showing thier estimate of value.

In addition, sellers should submit a "hardship letter," explaining the circumstances that make it impossible for them to pay the full amount of the loan. Seller needs to be able to show true financial hardship. Someone with the assets or the income to pay is unlikely to be considered, say most interviewees.

In preparing the package, be careful about discrepancies between the income now and the income used to obtain the loan, a big gap may indicate mortgage fraud, unless of course employment circumstances have drastically changed and you can prove it.