Short sale basics

Posted By Marshall Walker @ Jul 14th 2010 12:28pm In: Short Sales and Foreclosures

Short Sale Basics

When you request a short sale from the bank, the will request a great deal of personal information to be submitted   This is because the bank wants to know that you actually qualify for their short sale program.  Here is an partial list of items that you will need to send in the package. 

Financial Information

  • Last 2 checking account statements for all borrowers
  • Last 2 savings account statements for all borrowers
  • Last 2 equity /investment account statements for all borrowers
  • Last 2 years of W2's for all borrowers
  • Income tax returns from the past 2 years for all borrowers
  • Last 4 paycheck stubs for all borrowers
  • Self Employed: Profit and Loss statement
  • Credit Report - Get one actually for free from www.annualcreditreport.com

Summary of monthly recurring payments for all borrowers.  This will be used to compile a financial worksheet.  Items to consider:

  • Auto loans
  • Alimony / Child support
  • Credit card bills
  • Electric bills
  • Gas bills
  • Water / Sewer bills
  • Home telephone bills
  • Cell phone bills
  • Cable bills
  • Auto insurance
  • Gasoline (auto)
  • Health insurance
  • Life insurance
  • Doctor bills
  • Dentist bills
  • Pharmacy drug bills
  • Food / Groceries
  • Tuitions
  • Student Loans
  • Other Loans
  • Other reoccurring bills

 

 

 

Hardship Information

A hardship letter that describes succinctly yet persuasively why you are unable to make the mortgage payments.  We cannot write this for you. 

Some supporting documentation helps

  • Hospital bills
  • Doctor bills
  • Documentation of unemployment
  • Documentation of incarceration
  • Death certificate
  • Divorce decree

Sample Hardship Letter:

Re:  Hardship Letter/Short Sale for 123 Main Street, City, State 12345

To Whom It May Concern:

I purchased the property at 123 Main Street in March 2006.  At that time, I had just started my own business, which had great promise for generating profits capable of supporting my mortgage.  Unfortunately, sales have decresed steadily for the past _____ months -  I have run out of money.

I have begun a second job began working as a _______ to make ends meet. At the same time I was redoubling my efforts in my own business, but to no avail.

I have additional health issues ________________

After struggling for months to make my expensive mortgage payments, I had no choice but to stop makeing payments ________2010

I put my house on the market in ___date____

 I love my home, but I also understand that, at this point, I cannot afford it.  I  My financial situation cannot sustain a home mortgage of nearly $$$$$$ per month.  I would like nothing more than to sell my home, avoid foreclosure, and salvage my credit. This is my main concern. I know that a foreclosure on my record will affect me for years to come. I would ask that you please assist me in avoiding this. 

Please accept this offer as payment in full.  My attorney has advised me to file bankruptcy, but I prefer to avoid further destruction of my credit.  I just want to move on and start over.

I deeply appreciate your help and understanding in this matter.  If you have any questions, or need anything further from me, please contact me personally

 


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