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LegalCornerTM - Foreclosure and Short Sale F.A.Q.'s

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Q.What documents will I need for a short sale?

A.What is required varies. Typically, however, you will need to provide the lender with the following: (1) hardship letter detailing the circumstances behind the short sale; (2) a signed and dated purchase and sales agreement with a third party willing to buy your property; (3) a preliminary HUD-1 settlement statement and a preliminary estimate of proceeds to the lender; (4) a full appraisal of the property; and (5) additional proof of the seller's financial condition (e.g. pay check stubs, bank statements, tax returns, personal financial statement or monthly income and expense form, etc.)

A seller with few assets, little or no income, high credit card debt, and a willingness to file bankruptcy has little to lose by providing this information to their lender. However, seller's with other assets, a job with garnishable wages, or a desire to avoid bankruptcy put themselves at risk.

If you are considering a short sale you are best advised not only to speak with a local realtor in your area to discover the condition of the housing market, but also an attorney for expert legal advice on your options and risks and to aid you in negotiating with the lender.

Copyright 1999-2019 Melissa C. Marsh. All Rights Reserved. All Information on this website is subject to a Disclaimer and Use Agreement. This information is provided as general information only and should not be construed as legal advice. We advise you to seek the advice of competent legal counsel to address your own specific questions, facts and circumstances.