Short Sales....Are you prepared?

Short Sales....The Proper Application and Knowledge During This Difficult Process

The process of buying a home is difficult, and when you add a possibility of adding a short sale to it can complicate it even more.  No matter if you are a buyer or seller, the information below is important to make sure it is all ready and submitted to the bank for approval before you can even move forward.

Here are most of the items that a bank will need and ask for so it doesn't end up back on your desk!

Financial Information

• Tax information
• Two most recent 1040′s
• Two most recent W2′s
• 60 days of current bank statements
• 30 days of current pay stubs or commission check stubs
• If self employed-pay stubs or YTD profit and loss statement
• Monthly budget/financial statement signed and dated same day as P&S

Hardship information

• Hardship letter dated signed same day as purchase contract
• Any docs supporting the actual hardship
• Medical bills
• Child support or alimony payment information. Divorce decree or child support order

Mortgage & Other Relevant Property Information

• 1st Mortgage statement
• 2nd Mortgage statement if applicable
• Recent Real Estate tax bills
• Recent condo association bills if applicable
• Any recent water or sewer bills

Other Pertinent Documentation

• Authorization form
• Short sale disclosure
• Waiver of conflict if representing the buyer
• 3 recent comps
• Listing agreement
• Offer/P&S
• Listing history
• Buyer proof of funds letter or Pre Approval letter

These are required by every bank, with some banks adding additional documents they may want in addition to these.

Make sure you hire the right Realtor and one with knowledge on this topic before allowing them to help you in this process.