There are still many people facing short sales. If you are one of them, then this generic list of commonly required items may be helpful:
- Hardship letter – A letter to the lender/mortgage company explaining why you need to sell for less than you owe
- Bank Statements – Copies of all recent bank statements
- Pay Stubs – Copies of all pay stubs for at least the last two months
- Tax returns – Copies of your tax returns for the last two years
- 3rd Party Authorization letter – A letter to the mortgage company where you give the lender permission to discuss your loan with your real estate agent. Be sure to give your agent’s name, company and contact info on the letter
You will need to provide your agent:
- Mortgage/Loan number
- Any contacts (names/phone numbers) that have already been given to you
- Any payoff letters that you may have received
- The date/information concerning a sheriff sale
- You may need to provide the last four digits of your social security number (which the lender will use to verify your account. Do not give anyone else these numbers and do not give more than the last four digits!)
Your agent will have to provide to your lender/mortgage company:
- Copy of your listing agreement
- Copy of the purchase contract
- Copy of a pre-approval letter for the buyer
- An Estimated Settlement statement (also called a HUD-1)
Please note that all of these documents will have to be submitted to all lenders/mortgage holders and that all documents need to be signed. For specific details, be certain to call your lender right away.
If you are facing a potential of foreclosure, do not wait to receive sheriff sale information. Let your real estate agent know immediately and do your best to sell your house. It is much better to have a short sale on your credit than a foreclosure!