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Carson Valley Nevada Short Sales - The Short Sale Package Explained

Real Estate Agent with Dickson Realty BS.143506

Nevada Short Sales - The Short Sale Package ExplainedStack of Papers

When we list short sales, we counsel sellers up front on the financial disclosure they are going to have to make to us and to the lender(s) to get their short sale approved. For most people, exposing your full financial situation - especially when you are in distress - could be equated to standing on stage naked. So - in order to get over this 'fear of exposing yourself', let's talk about the short sale package and why we request all these documents in the first place.

Nevada Short Sales - What Goes Into the Short Sale Package? When we assemble a short sale package, the following items are included in this specific order:

  1. Cover letter with a checklist of included items and a brief synopsis of the market
  2. Listing Agreement
  3. Third Party Authorization to Release Information
  4. Completed Financial Worksheet
  5. Hardship Letter
  6. Proof of Income (last 2 paystubs for all borrowers)
  7. Proof of Expenses (last 2 month's bank statements)
  8. Last 2 year's tax returns including W-2's and 1099's (validates change in income)
  9. Most recent mortgage statement (one for each loan on the property)
  10. Signed Purchase Contract
  11. Pre-Approval Letter from buyer's lender -OR- Proof of Funds Available to Close
  12. Estimated HUD-1 Settlement Statement
  13. Comparative Market Analysis (demonstrates current market value of home)
  14. Complete Property History report including number of showings
  15. Full set of photographs of the property including any deferred maintenance or damage photos
  16. Estimated cost of repairs, if any
  17. Full statistical report showing historical averages of prices over the last 3 years in area neighborhood where subject is located
  18. Statistical report showing recent sales of foreclosures in area neighborhood where the subject is located
  19. Current listings that are available for sale in the area neighborhood (priced lower that are not selling)
  20. MLS Printout of subject property (showing it was marketed with a virtual tour and pictures and presented to the market properly)

Whew! By the time we're done with all that, it's the size of a hefty novel! So why do we include ALL THIS stuff with our short sale packages? We include it all because every piece of it is critical to getting your short sale approved. The financial documentation you provide is critical to demonstrating why you are deserving to be approved for the short sale, but it is just one section of the puzzle.

While you're busy exposing yourself financially, we are exposing ourselves as agents - demonstrating our knowledge in the market to make the case for why the current offer you have is valid and should be accepted. We present a full and complete picture of the market, including what the bank can expect to receive if they foreclose on you. Often, the short sale offer the bank has in it's hands is better than a bank owned selling price. It's also important to show that we marketed the property fairly in the Multiple Listing Service with not just one picture, but several pictures, and a virtual tour. The bank needs to see the property was exposed, too - to the market of available buyers.

Once the bank sees the full picture, short sale approval is usually willingly given. But you have to show the bank the full picture first.


Photo courtesy of PhilNel.com. This article originally published on CarsonValleyShortSales.com on March 14, 2011.

Posted by


Christianne O'Malley, REALTOR®, e-PRO, CDPE, SFR,

RE/MAX Realty Affiliates - Great Nevada Homes, Inc.

Direct: (775) 881-8223

Visit us online at GreatNevadaHomes.com 

The information in Christianne Gordon's blog is deemed accurate but not guaranteed. Any individual considering a short sale should also seek independent tax and legal advice to get specific information as it relates to their personal situation. Christianne O'Malley is a licensed real estate agent with RE/MAX Realty Affiliates serving the entire Northern Nevada region including Reno, Sparks, Carson City, Washoe Valley, North Valleys, Fernley, Dayton, Stagecoach, Minden, Genoa, Gardnerville, Smith Valley and Yerington.


The Scott Loper Team Bux-Mont Premier Properties
Keller Williams Real Estate - Montgomeryville - Lansdale, PA

Hi Christianne,

A detailed checklist is the only way to go.  Sometimes I think it is part of the test you have to pass for the banks.


Mar 16, 2011 01:29 PM
Christianne O'Malley
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!

Hi Lisa - You may be right. I just submitted a short sale today - it was 182 pages! YIPES! But I think when we take the extra time to help negotiators understand with a checklist what is in the package, and where they can find it quickly, it helps to get these transactions moving towards approval much more quickly.

Mar 16, 2011 01:33 PM
Tim Peterson
Wisconsin Realtor Safety and Concealed Carry Classes - Madison, WI
Realtor Safety Training Classes

Hi Christianne wow thanks what a great checklist-now to show the clients

Mar 16, 2011 03:45 PM
Lottie Kendall
Compass - San Francisco, CA
Helping make your real estate dreams a reality

Christianne, you've written a GREAT list and explanation to sellers what is needed and why. I'm bookmarking this. With my thanks,

Mar 17, 2011 01:38 AM
Christianne O'Malley
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!

Tim - Thanks so much. Please feel free to share it!

Mar 17, 2011 04:56 AM
Christianne O'Malley
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!

Lottie - Thanks so much. I'm so flattered that you're bookmarking it :) 

Mar 17, 2011 04:58 AM
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Good morning Christianne.

That is a great presentation.

Have a nice and productive day.

Mar 19, 2011 01:48 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

And then don't forget all the updates. The second week of every month is typically spent scrambling to upload new bank statements and payroll stubs.

Mar 19, 2011 04:03 AM
Kenneth Cole
Weichert Realtors Appleseed Group, 2043 Richmond Ave. S.I.N.Y. 10314. office phone 718-698-9797, Appleseedhomes.com... - Staten Island, NY
NYS Licensed Real Estate Salesperson

What a great post.  I wonder why it did not get featured.

Mar 22, 2011 02:10 AM
Christianne O'Malley
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!

Elizabeth - Aren't you right! Then comes the question: What don't you have that you need so I can send you volume #2? :)

Kenneth - Thanks for your comment. You can always clickm suggest ;)

Mar 22, 2011 08:18 AM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Your package is very thorough and comprehensive Christianne!

Mar 27, 2011 04:56 AM
Christianne O'Malley
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!

Hi Renee - Thanks so much for your comment.

Mar 28, 2011 06:26 AM
Not a real person
San Diego, CA

I think full financial disclosure is why so many people don’t use their family and friends real estate agents. They don’t want those people to know exactly what their financial situation is.

By the way, you have a shout-out in my March 31 Pay It Forward Google juice (part 8) post.

Apr 01, 2011 01:04 PM
Thomas Sweeney
Tom Sweeney Real Estate, Owner/Broker, Bossier City, LA - Bossier City, LA

Christianne, You are without a doubt the greatest combination of brains and beauty that Nevada real estate has ever produced.I am so impressed with your writing and your knowledge. You're a valuable resource on Active Rain. If you have any casino employees, (Casino Execs would be better) :-) who are re locating to the Shreveport/Bossier market please refer them to me. I'll pay a 30% selling side or a 30% listing side, whichever type of client you refer. Thanks, Tom

Apr 03, 2011 07:52 AM
Christianne O'Malley
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!

Hi Russel - I think you are absolutely right. Thank you so much for giving me a shout out. I'll have to go check it out :)


Apr 12, 2011 05:59 AM
Christianne O'Malley
Dickson Realty - Reno, NV
Exceptional Service - Delivering Results in Reno!

Tom- Thank you so much. I'm so flattered. If I have anyone relocating from here I'l be glad to refer them to you :)


Apr 12, 2011 05:59 AM