Real Estate Short Sale

Short Sale Information And What You Need To Know

Short Sale Information and documents neededYou’ve decided that you need to sell your home and are trying to determine what is your best option as the seller.

Short Sale Reasons and Requirements

UNEMPLOYMENT -Letter from previous employer indicating you are no longer employed.

REDUCED INCOME-Letter verifying terms of reduced income (fewer hours/less pay).

DIVORCE-Divorce documents that verify there is an order to sell the property.

SEPARATION -If a Legal Separation – documents verifying agreement and necessity to sell the property.

DEATH OF SPOUSE OR FAMILY MEMBERIf decedent is on the loan – provide a copy of the death certificate.

PAYMENT INCREASE -Copy of note showing an increase – a letter from lender explaining the increase in payments.

BUSINESS FAILURE -Letter from Tax Accountant explaining the current financial status of your business.

JOB RELOCATION-Letter from employer showing the terms of your relocation.

ILLNESS -Doctor’s letter showing time-off from work or if it’ s disability, a copy of disability checks.

MEDICAL BILLS -Copy of Bills or paid checks for medical expenses.

DAMAGE TO PROPERTY -Bids/Bills for any repairs and an explanation of the damage.

MILITARY SERVICE-Copy of service paperwork to show the length of your commitment.


This next section if for actual Foreclosure and what happens when you can no longer get a Short Sale approved.

The first step is to clarify your hardship. This should be very clear and compelling so the lender can understand why your payments have gone delinquent. It is also important that this information has documents to substantiate your hardship. What is your current situation and be specific as to how is happened?


Sample Cover Letter for the Short Sale Package to the Lender


To: (mortgage company) (Address)

RE: (property address) Loan Number: ()


Enclosed, please find the following documents regarding the above property for your consideration of a short-pay:

  1. 2-year tax returns with W -2 forms
  2. Hardship letter
  3. Year-to-date earning statements
  4. Bank statements
  5. Financial statement
  6. Loan information and release authorization
  7. Accepted offer – subject to your approval
  8. Approval of buyer
  9. Broker’s Price Opinion (BPO)
  10. Net sheet
  11. Preliminary title reports for the property

Our market is very distressed; therefore, I cannot stress the importance of obtaining approval quickly. We have found when it takes too long, the potential buyers become less motivated and go to other properties in the area that are not so overly encumbered. The buyer is motivated to buy quickly so that they have peace of mind, knowing they have purchased a home.

If we can get additional information for you, please give us a call. Thank you for your immediate attention to this urgent matter.


You will need help to gather all this information, so make sure you hire the right agent the first time…not when it’s too late!

Selecting the right SHORT SALE AGENT …

I firmly believe that selecting the right agent is often the single most important element in a successful home sale. Uneasiness and/or discomfort in the agent/seller relationship lead to unhappiness on both sides and usually results in a poor outcome. A Short Sale Transaction is a time sensitive sale and because of this added pressure, you will need to be comfortable in discussing expectations, thoughts, and concerns regarding all aspects of the sale of your home.

I hope this report has given you a better understanding of just how important it is to choose the right Realtor for a successful home sale. Asking these questions, before you sign with an agent, will help you to determine if the agent you want to sell your home specializes in Short Sales and is also qualified to process your short sale.

Please feel free to call me if you would like further explanation of any of these topics, or if you have any other real estate questions. As a Realtor, my mission is to constantly strive to be as helpful as I possibly can to homeowners. I hope this information provides the answers you need to be an informed home seller.


If you have any questions, concerns, comments please do not hesitate to contact us.

Michael E. Anderson, Broker, ABR, RSPS Cal BRE#01417114

Call or Txt 805-698-3770 or

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