Selling your home by short sale is just like selling the home the normal way. The only difference is you do not have enough money at settlement to pay the lender ( mortgage company) in full. That is why it is called a short sale.

When a buyer buys your home and you agree to sell it to them, the contract must be contingent upon third party approval. ( the bank must agree to the price and terms) Once the bank agree's they will issue you the seller a Short Sale Approval Letter.

The key to a successful short sale is the package your real estate agent presents to the lender. The Erick and Company Team makes sure that sellers have a professional law firm assist with all needed information and paperwork and then the negotiations begin.

 Below is a list of the items we typically need to show the lender you no longer qualify for your home.

A Title Report

A title report is ordered before a Short Sale package can be presented to the lender. This will show the bank that there are no current liens on the property. 

A Signed Notoraized Authorization Form

This form grants your real estate agent and professional negotiator the right to act on  your behalf when communicating with his/her lender. If you have more then one lender, you will need a signed notarized authorization letter for each bank.

W2 - FOR THE PAST 2 YEARS

TAX RETURN FOR THE PAST 2 YEARS

Signed 4506-T  IRS Tax Form

The 3 Most Current Bank Statements( all checking & savings) all pages of statements

The 3 Most Recent Pay Stubs

Copies of Letters You Have Received From Mortgage Company.

Two of the most recent mortgage statements ( 1st and 2nd)

Signed Hold Harmless Agreement

A Signed Listing Agreement

Your Hardship Letter

The hardship letter should be short, to the point and only a few paragraphs. ( if possible) Items that lenders look for in regard to a hardship.The hardship letter sets the tone for the short sale approval.

• Family illness or injury
• Illness or injury in the extended family - especially if a relocation is eminent.
• Job relocation and property is signifigantly upside down
• Loss of a job
• Signifigant loss in income
• Divorce or split of domestic partners
• Mortgage payment adjusts and is no longer affordable
• Death of a spouse and loss of income

If you have any questions with regard to a short sale or how to get started please don't hesitate to email me. Submit Email now or call Peggy James my listing specialist directly at 703-851-3085.