You were lucky to be able to buy a home without proving your income. Now that you’re heading down the road of selling your home for less than you owe, you’re going to need to provide the bank with a mountain of paperwork. Good recordkeeping should help you gather this information.
List of Documents Your Lender(s) Will Need
Not including any forms that the bank has already pre-formatted to help you compile this information, you can still submit all of the information that they need.
You will most likely need to provide the following:
- Two most recent tax returns (2007 / 2008).
- Two most recent pay stubs. If self employed, a 6 month profit and loss statement showing how much money you make.
- A letter of hardship explaining your current financial hardship.
- A [download id=”5″] to each lender giving your REALTOR permission to speak on your behalf through the negotiation process.
- A borrower financial statement (sometimes the bank has a specific set of forms that you’ll need to fill out that fulfill most of these document requirements) if available.
- 3 months bank statements for all asset accounts, checking accounts, investment accounts, etc.
- An income and expense budget report. This is where you take your total income, and you list all of your minimum monthly expenses to show how much you have at the end of the month.
Depending on the lender, there may be other documents that are required. As soon as the home is listed, we will also need to provide them with the listing agreement, and when an offer comes in there is another list of documents that will need to go to the bank to begin negotiation towards a letter of agreement.