What is a short sale package?

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What is a short sale package?

If you are a seller who is selling your home in a short sale transaction, then you will need to submit to your mortgage lender (or lenders) a certain number of items in order the lender to consider you for a short sale.

Short sales are subject to mortgage lender approval. Mortgage lenders are not required to allow you to participate in a short sale transaction. You see, sometimes they will allow you to do so because they know that they can make more money in a short sale then if they allow the property to end up in foreclosure.

Since the decision to approve the short sale is entirely up to the mortgage lender, you need to be patient and tolerant of your mortgage lender throughout the short sale process.

The first part of the short sale process is to prepare the documentation also called the short sale package. The short sale package usually includes pay stubs, bank statements, and tax returns. Additionally, the package will also include a hardship letter and a financial statement. While some mortgage lenders may waive the requirement for all of these documents, it is fairly standard practice for mortgage lenders to request all of the items listed above.

When you list your property as a short sale, your listing agent will probably request these items up front in order to begin to prepare the package that goes to the bank. Aside from the items that you supply, this package will also include a listing agreement, a purchase contract, an estimated settlement statement and an authorization form.

If your listing agent does not request the pay stubs, bank statements, tax returns, and hardship letter and you have listed your home as a short sale, you may want to find out why this is the case.

A qualified short sale listing agent will request all of these items at the beginning to the transaction. Experienced short sale listing agents know that a short sale is a long and tedious transaction. However, these agents have the experience required to make the transaction itself as smooth and efficient as possible.


  1. says

    Great article again Melissa. Other documents may include: power of attorney, Sales Contract or Deed, HUD Statement Draft, Credit Report, Listing Agreement, Authorization to Release information, Photos and Repair Estimates of damage, Executed Bill of Sale, Supporting Hardship Information, Buyer Approval (if there is a cash buyer the bank may want proof-of-funds), Comparables, Crime or Neighborhood Data (if the area has seen depressed home values because of circumstances like crime, include that information)


  1. […] If you are a seller who is interested in selling your home as a short sale, you must be prepared to provide some information to your mortgage lender in order for the lender to approve the short sale. Despite the fact that the information is not wrapped in a box, it is called the short sale package. […]

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