If you are selling your property and you owe more on your mortgage than the property is worth, you will have to do a short sale. The following documents are going to be the minimum required by your lender to determine whether they will approve a short sale.
- Hardship Letter – explain in detail what your hardship is. Include your name and loan number in the letter.
- Tax Returns from the last 2 years
- W-2’s from the last 2 years
- Bank Statements (2 most recent months)
- Payroll Statements/check stubs from employer (2 most recent months)
- Financial Statement listing all of your assets and liabilities.
- Recent mortgage statement or coupon showing balances. Include loan number, monthly payment, and the name/address of all mortgage /lien holders.
- Listing Agreement if you are selling your property through a Realtor
- Sale and Purchase Contract executed by Seller/s and Buyer/s
- Loan Commitment/Approval Letter received from Purchaser
- Preliminary Net Sheet (HUD-1) prepared by Closing Agent)
- A Comparative Market Analysis (to be prepared by Listing Agent
- Any additional documents required by Lender/s to be submitted
The short sale process takes a long time, so in addition to having all of the above-mentioned paperwork you will need to have patience. EWM Title has a lot of experience doing short sales and has created a short sale package to assist you.