Short sales can be stressful and a time-consuming process. In many cases they will be necessary in order to get you out from under your mortgage debt, especially if property values decline. By doing a short sale, you will be able to take a large bite out of the money you owe to your mortgage company so that you are no longer liable for the entire amount. We are usually able to obtain a full satisfaction of the mortgage so there's no further financial obligation to that lender.

In order to start the short sale process, there are several documents that are needed from our seller(s). These forms can be found by clicking on the Forms (make this a link to Forms page) tab on the Home Page.

1)          Authorization To Release. This form is needed for us to be able to speak to the bank on behalf of      the borrower or mortgagor (seller).

  1. The Short Sale Service Agreement. This form includes borrower's consent to handle the short sale process with their lien holders. It also includes important disclosures.
  2. The Short Sale Questionnaire should be completed as thoroughly as possible by the seller. The answers to these questions are all important and help us determine what needs to be paid in order to sell the property. With any sale, there are payments that must be made at closing other than the 1st mortgage holder. We need to know these amounts at the beginning of the short sale process.
  3. The Hardship Letter should be completed by the seller and briefly explain why the borrower (Seller) needs to sell and if the mortgage is delinquent, why the payments can not be made. This should be approximately 2 or 3 paragraphs.

The forms above are the documents we must have initially to start a short sale file. It's helpful if the seller can also provide us with their Lender's Mortgage Statement and any bills or lien/judgment info available. We'll at least need contact info for any financial obligations that may need paid to consummate the sale.

Depending on the mortgagees (Lender's) requirements, other financial documents are often required from Borrowers (Sellers). The commonly required documents are listed below. After we have the file set up and have contacted the lender, we'll send an email to the seller and their agent requesting the documents needed. This usually takes a week after receiving the initial docs above.

  • Financial worksheet – a detailed breakdown of all your income and expenses
  • Most recent 2 months of pay stubs or a recent profit and loss statement if self-employed.
  • Most recent 2-3 months of bank statements
  • Your last two years of federal tax returns (1040's & Schedules only) not state or local. The returns you send us must be signed & dated.
  • In most cases the lender requires some additional documentation, or they'll ask for updated financials like pay stubs and bank statemenyts, so always keep important paperwork handy and be ready for those requests! If you’re unable to provide requested paperwork in a timely fashion the lender may close your file and you’ll need to start all over!
  • Other documents that we'll collect from your agent include, Purchase (Sales) Agreement, Listing Agreement, and MLS Page. We also must submit lender required documents including Estimated HUD1 (Settlement Costs), Contact Form, Explanation of Short Sale Request Form, Loan Modification documents if required before short sale review, Repair estimates & property photos, Lender intake form, Payoffs for subordinate lien holders, 2nd mortgage approval. There may be a variety of other documents needed depending on servicer or investor guidelines.

Once the required documents are collected and reviewed, the short sale package will be submitted to the lender(s) and the process will begin. Once the process has been initiated on your property, everyone associated with the short sale will receive email notifications explaining the current status of your short sale and any documents needed on the file. These email notifications are sent at least once per week and come from our property tracking email system – Noreply@Proptrackr.com.

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