Documentation Needed for a Short Sale

A short sale is one way to sidestep going through the complete foreclosure process, but it is not a shortcut. Both foreclosures and short sales can take time to complete. Even when you are desperate to sell, you will want to make sure that you do not try to rush the short sale process because you do not want to be worse off than you were. Sometimes prospective buyers will make very low offers, thinking that the seller should take whatever is offered. The seller still has to pay their debt to the lender; they are not just trying to get rid of the house by any means.

One way to make sure the short sale process proceeds efficiently if you are a homeowner is to have your documentation ready for your lender. This includes—

Documents that show proof of your income and assets, including bank statements and income tax records for the last two years..

A letter explaining the difficulties that prevent you from continuing to pay for expenses related to your homes.

A listing of any liens on the property.

A comparative market analysis that demonstrates that the property will not sell for the amount owed on the loan because it has lost value.

Also see:
What is a short sale and how does it work?