To better understand the short sale process I have put together a summary of the items involved in a short sale transaction.
Please note, timelines and action items can change or be delayed at any time during this process. Our goal is to keep everything on track but in some cases there will be things that are out of our control.

The Basics of a Short Sale

Lenders grant short sales for two reasons: the seller has a hardship, and the seller owes more on the mortgage than the home is worth.

A few examples of a hardship are:

• Unemployment / reduced income

• Divorce

• Medical emergency

• Job transfer out of town

• Bankruptcy

• Death

Building The Short Sale Package

The homeowner will need to prepare a financial package for submission to the short sale lender. Each lender has its own guidelines but -- with the exception of Wachovia, which is the best short sale lender in the world -- the basic procedure is similar from lender to lender. The seller's short sale package will most likely consist of:

• Letter of authorization( I will provide)

• HUD-1 or preliminary net sheet ( I will provide)

• Completed financial statement ( I will provide a blank copy)

• Homeowner’s hardship letter

• 2 years of tax returns

• 2 years of W-2s

• Recent payroll stubs

• Last 2 months of lender statements

• Comparative market analysis or list of recent comparable sales( I will provide)