Short Sale - Short Sales in Denver Area - Part 2 -

Sellers: Documents Required to request a Short Sale

If you are in the beginning stages of selling your home as a Short Sale, here is a reference checklist of the documents the Lender will require. Lenderimes, this packet is called the Hardship Package. It is a good idea to collect all the documents ahead of time to avoid delays and to make sure everything is in place. Lenders only accept complete packets, and submitting random pages or individual documents only causes delays in processing your short sale.

We require the seller to gather the documents ahead of time, even before listing the home. This way, the ball gets rolling immediately and without delays. If your listing agent does not ask for these documents, be aware. Make sure the listing agent knows how to work Short Sales; this is vital to the success of your short sale.

Keep all the original documents. We will submit copies of the documents to the Lender on your behalf. Each Lender is different; the list below represents the documents generally required by the Lender. If her papers are needed, the Lender Requests them.

SHORT SALE CHECKLIST

Financial Documents

• Two most recent paystubs (for all borrowers)
• Two most recent checking account statements (for all borrowers)
• Two most recent savings account statements (for all borrowers)
• W-2s for the last two years (for all borrowers)
• Tax Returns for the previous two years (for all borrowers)
• Copies of all bills for the last two months (for all borrowers)

Hardship Letter

• This letter has to be HANDWRITTEN
• it is an explanation of your hardship
• why you are unable to make payments on your loan

Navigating the short sale process requires patience and expertise.
Let the experts at Kenna Real Estate Group guide you through the process. Call or Text Kenna Real Estate Group at 303-955-4220 to get personalized assistance from our expert real estate agents. Find out what your home is worth in today's market.

Hardship Documentation

• any documentation that proves your hardship (in addition to the above financial documents)
• e.g., divorce decree, hospital bills, documentation of unemployment

Lender Information

• monthly statements from all mortgages ( 1st, 2nd, Home Equity, HELOC etc.)
• Short Sale Application from Lender
• Name, phone, and e-mail for contact at the loss mitigation department
• Name, phone, and e-mail for the supervisor of a loss mitigation department
• any recent correspondence from the Lender Lender's loss mitigation dept

Other Information

• Any other lien documents: HOA liens, IRS liens, Property tax liens etc.
• Any correspondence from attorneys (if involved in pre-foreclosure, etc.)

Documentation Listing Agent will gather.

• Comparative Market Analysis (CMA)
• Preliminary HUD-1 statement (including Title search)
• Note: A title search will reveal if there are any other liens or issues and may require you to include some additional documentation.
• IMPORTANT! Payoff Authorization Form that allows your Listing Agent to communicate with the Lender Lenderien holders) on your behalf.
• Listing Agreement

Note: Not all homeowners qualify for a Short Sale. Stay tuned for Part 3 of the Short Sale.

To be Continued... Part 3: Sellers - Qualifications for a Short Sale

If you have any questions about Short Sales, please get in touch with us anytime. When listing your home as a short sale, you want to ensure the listing agent knows how to do Short Sales. We have three people dedicated to staying on top of each Short Sale process from the beginning to the end.

Note. Even if all documents are submitted and you are approved for a Short Sale, it is not guaranteed that the Short Sale will be completed due to many factors.