Congratulations! Now that we’re under contract, the real work begins.
At this phase in the short sale process, it’s my job to make sure you don’t miss any critical deadlines. The next step will be submitting a complete short sale package to your lender to open up the file and start the approval process. This process can take anywhere from 6 weeks, to over a year. It’s completely dependent upon the competency level of the people who are assigned to handle the file at the bank.
So, to get started, I’ll need the following from you, and I’ll need you to continue to provide the information on a monthly basis while I negotiate the approval. At times, your lender is probably going to ask for duplicate information. They do that. It makes no sense. But, we need to comply with every request expediently.
By now, you’ve already provided me with a 3rd party authorization form so that I am able to speak to your lender on your behalf. The remainder of the documents that I’ll need to move forward are as follows (Items in bold are what you need to provide. All other items have already been provided.)
- Tax Returns. I’ll need the two most recent years’ returns, in full.
- Proof of Income. This will either be the two most recent pay-stubs for each borrower, a profit/loss statement from your business, social security income statement, unemployment statement, or a combination of those. We’re simply showing them how much you’re net income is every month.
- Two months worth of your most recent checking account statement.
- Borrower Financial Worksheet. Fill this form out, disclosing only the information you feel comfortable disclosing. The real point of this document is to show that your income and expenses aren’t working out for you. You can download the form here: [download id=”9″]
- Purchase Contract*
- All associated addenda*
- Listing Agreement*
- Property Market Analysis*
- Letter of Hardship. This is a short, sweet explanation of your economic hardship. The facts are all that matter in this. Download the example here.
*Items with an asterisk have already been generated and are already in the Short Sale Package.