When doing a short sale, most lenders require the same Short Sale documentation to be provided for them to consider allowing the short sale. This process involves much of the same paperwork needed when buying real estate and applying for a loan.
Although some lenders may require additional documentation, here is a list of the minimum documentation required for most, if not all, short sale transactionss:
- A hardship letter
- Authorization of Release Information (this allows the Realtor and others to work with the lenders on the seller’s behalf)
- Financial statement
- Most recent 2 years of federal tax returns
- Most recent 2 months of bank statements & investment accounts
- Most recent 2 months of pay stubs (if self-employed, then current P & L statement)
- Any evidence of hardship, if applicable (ie. medical records, layoff notice, etc.)
Of course, you’ll need to work closely with your Realtor on what exactly is needed for your specific situation. We at Capital Realty will contact the lender directly to get a list of all documentation needed if you are considering a short sale. Please feel free to contact us today to get started.