Short Sale Documents

To begin negotiations with your lender, we need to provide your lender with the information they have requested in order for the short sale package to be acknowledged. Your lender requires the following to be included in a short sales package:

1) Recent mortgage statement or coupon
2) Two years tax returns
3) Two months bank statements
4) Two recent pay stubs
Freddie Mac Borrower Financial Information form
Authorization to Release

If you don't have something from above, please complete an explanation letter. You will also need to write what is known as a hardship letter. The purpose of this letter is to inform the bank of your current financial status and why you are currently unable to make your mortgage payments. If you were not able to provide any of the following materials listed above, please reference them in your letter with an explanation. The following format for the letter is offered as a suggestion:

To Whom It May Concern:

1st paragraph: I can no longer afford the property at _______________________________________.

2nd paragraph: Describe at least three reasons that you will no longer be able to make payment. If youdo not have a job, or a bank account this needs to be included. Generally, this paragraph may be 4-6 sentences in length.


Here is two examples of hardship letters: Harship Letter Example #1, Harship Letter Example #2

This information will make up the body of the short sale package that we send to the bank. A loss mitigator will need to review this information before ordering an appraisal (BPO).

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