Short sale information needed from Sellers:  

1.Loan information release form: this form is signed by the seller of the property allowing the real estate agent authorization to receive information about the loan made to the seller.

2.Purchase and sales agreement: The purchase and sales agreement are the terms and conditions that a buyer has agreed to purchase the subject property for less than is owed by the seller. The purchase and sales agreement should stipulate that it is subject to “third Party” approval.

3. Hardship letter: The Sellers’ lender will require a hardship letter that explains in detail why the seller is unable to make the payments on the subject property. As much detail as possible explaining the “hardship” is preferable.  All information is private and must be quarded by the real estate professional and lender.

4.Loan approval for Buyer:  The sellers lender will require verification that the purchaser of the sellers “short sale” has unconditional loan approval. The short sale sellers’ lender wants the highest certainty that the subject property will close,

5.Most recent W-2 for seller: Part of the seller’s lender package is request for financial information. That can include tax information and pay stubs. If seller is an independent business person financials and profit loss statements may be required.

6.Bank statements: Sellers’s short sale lender will typically request copies of the sellers’ bank statements for the last 2 months. The lender wants to see shat accounts and reserves are available for the seller.

7. Listing agreement: The listing agreement between the seller and the real estate company is required by the seller’s lender. This demonstrates to the sellers’ lender that the property has been marketed for a certain marketing period.

8.Estimated proceeds and expenses: The seller’s Lender will require an estimated HUD closing statement. The estimated HUD (Housing and Urban Development)closing statement includes  the fees that the seller’s lender will pany and any proceeds allowable to any other lien holders behind the seller’s first lender. Any taxes, home owner’s fees, or expenses will be sent to the sellers’ lender for approval.