What you’ll need to provide if you plan on doing a short sale.

Are you ready for a short sale? We handled quite a few short sales in the last market downturn, and now we’re working on them again. We’ve recently been helping a client who purchased a home with VA financing and is now relocating for a new job. Since they just bought within the last year, they have negative equity.

The banks aren't geared up yet for the kind of short sales we saw in the last market downturn. You’ll need to get ready. Your clients will need a financial package that includes income, an expense report, and a hardship letter. They'll look for two years of tax returns and transcripts to ensure what they're giving the lender is the same thing that they're reporting to the IRS.

They'll also look for three months of bank statements. They're not going to look for someone that has $50,000 in the bank and is asking to do a short sale and take less money than what is due on the mortgage obligation. Finally, they'll ask for the last two months of pay stubs.

This can be a tricky situation to navigate. If you have any questions or comments, remember that we’re just an email or a phone call away! We’d love to help you.