What is a complete short sale package??
When I speak with the people working in the short sale departments, the most common problem with the packages they receive from agents is an incomplete package. What makes a complete package?
1. The financials from the borrower including tax return, W2 or paystub, recent bank statements, list of their expenses, list of assets if any.
2. Hardship letter from the borrower. The "reason for default" letter should draw tears from the lender if possible. Be careful, however not to exagerate or lie on this letter. Any supporting documentation including proof of job loss, proof of hospitalization or disability or any other evidence of hardship.
3. Complete purchase offer for the property. Most lenders will not take the time to review a short sale package without a purchase offer on the property. Make sure the buyer is aware of the response time from the lender which is sometimes two months. Check with the lender for the response time.
4. Comparable are sometimes required before they order a brokers price opinion.
5. Net sheet showing the bottom line going to the lender. This should include the first and second lender.
6. Listing agreement signed by the seller.
Keep in mind this is the basic requirements and there are other documents that may be required. Check with your lender and ask them for their criteria on short sale approval. Good luck.
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