What does the bank need from a seller to approve a short sale?
The lender needs many documents from the seller in order to approve a short sale. The documents, altogether, are called a “short sale package”. The documents include: W-2’s, pay stubs, bank statements, tax returns, a financial statement, and a hardship letter. Because approval from a lender can take a long time, it is important that the listing agent have all of this information from their sellers as soon as possible. As your realtor to talk with the listing agent to ensure they have all the required documents. If they do not, a short sale transaction cannot occur, and you do not want to waste your time on that property.
