Short Sale Package

What is a Short Sale Package?

If you are a seller who is selling your home in a short sale transaction, then you will need to submit to your mortgage lender (or lenders) a certain number of items in order the lender to consider you for a short sale.

Short sales are subject to mortgage lender approval.   Mortgage lenders are not required to allow you to participate in a short sale transaction.   You see, sometimes they will allow you to do so because they know that they can make more money in a short sale then if they allow the property to end up in foreclosure.

Since the decision to approve the short sale is entirely up to the mortgage lender, you need to be patient and tolerant of your mortgage lender throughout the short sale process.

The first part of the short sale process is to prepare the documentation also called the short sale package. The short sale package usually includes pay stubs, bank statements, and tax returns. Additionally, the package will also include a hardship letter and a financial statement.  While some mortgage lenders may waive the requirement for all of these documents, it is fairly standard practice for mortgage lenders to request all of the items listed above.

When you list your property as a short sale, your listing agent will probably request these items up front in order to begin to prepare the package that goes to the bank.  Aside from the items that you supply, this package will also include a listing agreement, a purchase contract, an estimated settlement statement and an authorization form.

If your listing agent does not request the pay stubs, bank statements, tax returns, and hardship letter and you have listed your home as a short sale, you may want to find out why this is the case.

A qualified short sale listing agent will request all of these items at the beginning to the transaction.  Experienced short sale listing agents know that a short sale is a long and tedious transaction. However, these agents have the experience required to make the transaction itself as smooth and efficient as possible.


This article is posted here with permission granted by the author, Melissa Zavala, Realtor and real estate broker, Carlsbad, CA – DRE #01324959 –  –  


Harrison K. Long – solutions for real estate and business –  REALTOR and broker associate, Coldwell Banker Residential Brokerage – 949-854-7747 (phone) – (email) – CA DRE 01410855

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Thanks and have a great day!

This is for information only and not the providing of legal or tax services.  

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