Short Sale Information
How to buy and sell on short sale
It is fairly common to come across a home listing that says "subject to short sale approval." When purchasing a short sale, you'll want to get as much information as available about the possibility of an approval. If you're selling your home and wondering if a short sale may be necessary, again, it is important to get as much information as possible from an Attorney, Account, Tax Advisor and lender before contacting an agent.
What is a Short Sale?
A short sale is when you need to sell your home, but the current market value does not allow you to net enough money, from the sale, to pay your lender in full. It then becomes necessary to get your lender's approval to sell "short" of what is left on the mortgage.
When selling a short sale, the lender will usually require most or all of the following information:
- Lender Authorization & Release form
- Copy of driver's license
- Mortgage statements for all loans
- Any additional lien documents
- Two most recent pay stubs or profit & loss statement (if self-employed)
- Two most recent bank statements for all accounts
- Federal income tax returns for last two years
- Detailed letter of hardship (why you cannot afford the loan)
- Supporting hardship information & documentation
- Fully detailed income & expense statement
- Fully executed listing agreement & supporting documents
If you have questions about buying or selling a short sale use the form below.
Rooms consultants are available to answer your questions, discuss your options, and help navigate you through the process.