What documents do I need for a short sale?
Beyond the typical state issued disclosures and contracts a potential short sale seller will need to provide information to prove their hardship to their servicer and investor. While not all servicers require the same documentation here is a list of what your agent will need for your initial short sale package.
- Authorization to Release Information– Allows your agent to speak with your servicer/bank regarding your potential short sale.
- Application for Short Sale Consideration– Will vary from lender to lender and who the investor is.
- Hardship Affidavit– Letter communicating your circumstances, why you can’t afford the home, and how a short sale would benefit the servicer.
- Financial Worksheet– Monthly income and expenditure tables. Will be verified through your financial documents below.
- IRS Form 4506-T– Transcript Request Form
- Dodd-Frank Certification
- Financial Documents– See Below
If Employed
- Two most recent paystubs
- Letter from employer showings length of time at job(May Not Be Applicable)
- Two Months of All Bank Statements
If Self Employed
- Profit and Loss or YTD Statement
- Two years of 1099s
- Four months of all business and personal account statements
Employed and Self Employed
- Two most recent tax returns
- Owner Occupied- Proof of Occupancy- utility bill with owner name
- Investor Owned- Rental receipts, lease agreement, primary residence mortgage amount
It would be wise to keep all your documents easily accessible as your bank will require them to be updated throughout the transaction.
For more information on doing a short sale in Reno or Sparks contact Kristopher at (775) 870-4280 or Kris@Reno-Realty.com
Kristopher Kent, Realtor®
Managing Broker
Phone: 775-870-4280
Fax: 775-870-4281
Kris@Reno-Realty.com