What is a Short Sale Packet and What Needs to be in It?
A short sale package it used to determine whether a homeowner can afford the property. Most lenders already have a standard package which they will send to the borrower upon request. The borrower is expected to provide financial information to include income and household expenses. The seller must fill out forms with the Listing Agent to be submitted to start the Short Sale process – and submitted with any offer. These forms include: • The Listing Agreement • Authorization to Release form (to allow agent to discuss with bank) • Hardship Letter (see “How to Qualify” above) • Financial Statement • Seller Net Sheet (a copy of the HUD form with offer) • Contract (when offer is accepted) • Buyer’s Proof of Funds (with offer) The Buyer must provide additional items as well. Full details can be found at “Preparing an Offer on a Short Sale”, but the basics are: • Earnest Money check of at least 1% of sales price.
