What is Needed to Process a Short Sale Contract

More often than not, sellers are under the misconception that once we receives their sales contract, we are able to submit the offer to the lender. To the contrary, lenders will not accept or even look at the offer unless certain items from the Seller are submitted.
It would really speed up the process with the lender if you start getting the following items together preferably when a short sale listing is signed and at a minimum when the sales contract is signed.

  1. A written authorization signed by seller that our office can speak on seller's behalf.
  2. A copy of the listing agreement to be furnished by us.
  3. A signed contract of sale.
  4. A preliminary net sheet which we will prepare (settlement statement).
  5. Completed updated financial statement form.
  6. Two years of tax returns.
  7. Two months of seller's most current bank statements.
  8. Hardship letter.
  9. Two months pay stubs (if applicable)
  10. Comparative Market Analysis which we will provide. Often banks order their own appraisal as well.
  11. The Buyer will need to show proof of funds for the closing. If a lender is involved, we need a buyer approval letter. If this is a cash deal we need something from their bank stating they have ready funds to close.
  12. If these items are brought into the office with the offer to submit to the lender, it can be submitted to the lender within 24 hours of our office receiving this information.
  13. It typically takes the lender 14 days to get this information into their system, therefore, you are not likely to get any information or updates until after that two week timeframe. Some lenders can take up to 20 days.

This is why it is imperative to get all the information to our office, as most short sale contracts are time sensitive.

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