Short Sale - Short Sales in Denver Area - Part 2
Short Sales in Denver Area - Part 2
Sellers: Documents Required to request a Short Sale
If you are in the beginning stages in selling your home as a Short Sale, here is a reference check list of the documents that will be required by the lender. Sometimes this packet is called the Hardship Package. It is a good idea to collect all the documents ahead of time to avoid delays and to make sure everything is in place. Lenders do not accept packets that are not complete, and submitting random pages or individual documents only causes delays in processing your short sale.
We require the seller to have the documents gathered ahead of time, even before listing the home. This way the ball gets rolling immediately and without delays. If your listing agent does not ask for these documents, be aware. Make sure the listing agent knows how to work Short Sales, this is vital to the success of your short sale.
Make sure to keep all the original documents. We will submit copies of the documents on your behalf to the lender. Note. Each lender is different, the list below is a representation of the documents generally required by the lender. If other documents are required the lender will request them.
SHORT SALE CHECK LISTFinancial Documents
- 2 most recent paystubs (for all borrowers)
- 2 most recent checking account statements (for all borrowers)
- 2 most recent savings account statements (for all borrowers)
- W-2's for the last 2 years (for all borrowers)
- Tax Returns for the last 2 years (for all borrowers)
- Copies of all bills for the alst 2 months (for all borrowers)
- This letter has to be HAND WRITTEN
- it is an explanation of your hardship
- why you are unable to make payments on your loan
- any documentation that proves your hardship (in addition to above financial documents)
- e.g. divorce degree, hospital bills, documentation of unemployment
- monthly statements from all mortgages ( 1st, 2nd, Home Equity, HELOC etc.)
- Short Sale Application from Lender
- Name, phone, e-mail for a contact at loss mitigation department
- Name, phone, e-mail for supervisor a loss mitigation department
- any and all recent correspondence from the Lender and its loss mitigation dept
- Any other lien documents: HOA liens, IRS liens, Property tax liens etc.
- Any correspondence from attorneys (if involved in pre-foreclosure etc.)
Documentation Listing Agent will gather
- Comparative Market Analysis (CMA)
- Preliminary HUD-1 statement (including Title search)
- Note: Title search would reveal if there are any other liens or issues and may require you to include some additional documentation.
- IMPORTANT! Payoff Authorization Form that allows your Listing Agent to communicate with the lender (and lien holders) on your behalf.
- Listing Agreement
Note. Not all home owners qualify for a Short Sale. Stay tuned for Part 3 of the Short Sale.
To be Continued... Part 3: Sellers - Qualifications for a Short Sale
If you have any specific questions about Short Sales feel free to contact us at any time. When listing your home as a short sale you want to make sure the listing agent knows how to do Short Sales. We have three people dedicated in staying on top of each Short Sale process from the beginning to the end.
Note. Even if all documents are submitted and you are approved for a Short Sale it is not guaranteed that the Short Sale will be successfully completed due to many factors.
Disclaimer: This post does not intend to be or provide any legal or tax advise.
|Contact Brian Burke, Managing Broker with Kenna and Co. Real Estate @ 303.955.4220 to list your home for sale or to purchase a home in the Metro Denver Area, including Douglas County, Castle Rock, Highlands Ranch, Lone Tree, Littleton and Parker. Now accepting your referrals.
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