What is a short sale package?
A short sale package is a business case for why your bank should agree to a short sale. The package consists of proof demonstrating the seller’s hardship and the best offer for the property. Banks will provide a checklist of documentation they require to review the file.
First, short sale lenders will evaluate the homeowner’s hardship case. The documentation they require as part of the short sale package consists of the following:
- Homeowner financial worksheet – this is an overview of income relative to expenditures, assets, liabilities
- Last 2 years of tax returns
- Pay stubs
- Bank statements (3 months)
- Short sale hardship letter – this tell your story for what happened that caused the hardship
Secondly, the bank will review the offer to purchase the home and weigh this against the costs to foreclose. The documentation the bank requires to review the short sale consists of:
- Listing agreement
- Short sale addendum to the listing agreement
- Purchase contract
- Listing as it appears in the multiple listing service
- Comparative market analysis or CMA
- Net sheet
A typical short sale package can be anywhere from 60 to 100 pages, depending on the documentation the bank requests. Most banks will not assign a short sale file to a short sale negotiator until they receive a complete package.
If you have any questions about this process, please contact us right away!