Documentation Needed from You, the Home Owner, to complete a Short Sale
Documents are needed from everyone on the mortgage
1. Financial information: copies of all bank statements (checking and savings accounts) for last two months, W2s (and 1099s) and or Federal Income Tax returns for the last two years, pay check stubs for the last two months, 401Ks and IRAs for ALL borrowers.
2. Completed financial worksheet showing all assets and debts, income from all sources, and all monthly expenses. The bank will use this to see if there are assets that can be liquidated to pay off the debt and whether or not the borrower truly cannot afford the payments.
3. Back up documents: utility bills, medical bills, alimony, child support orders, credit card bills, car bills, insurance bulls, legal bills, food bills, school bills etc. for the last three months. We don’t need copies but you will need them to generate the financial worksheet.
4. Hardship letter: a very polite letter using words like unable to, tried to, can’t pay, sell, modify the loan, no change in the situation in the foreseeable future, struggle, need relief, next step is bankruptcy. PLUS proof of unemployment, medical bills, death certificates etc. as proof. We can help you with this and there are examples of hardship letters on the menu in the home page.
5. Mortgage information: first and second (if there is one) lenders’ monthly statements, Loss mitigation department phone number and supervisor/manager’s name
6. Property information: Proof of homeowner’s insurance coverage, property tax bill and payment status.
7. List of repairs (we can do the estimate)
8. Bankruptcy or other legal proceedings (divorce), lawsuits that cloud the title like HOA suit or boundary dispute with case number and contact information for the attorney.
Then when we meet we can go through the following together:
9. The signed Authorization to Release Information. This allows us to talk to the bank on your behalf.
10. Signed Sales and Purchase Contract: this includes addendums allowing us to market the property before I actually own it. Please contact us and we will send you a copy for you to read through or check with your attorney.
11. Notarized Affidavit of Understanding: this can be done at your bank for free or by any notary public.
12. Commission agreement – with the realtor who will list the property for us. This is something the bank will eventually pay NOT you, once the house is sold.
