What is required by the mortgage lenders to do a short sale

  • 2 years W-2’s, 1040’s
  • 2 months bank statements, both checking and savings
  • 2 pay-periods of pay stubs
  • A Financial statement, showing assets & liabilities. Usually provided by lender, contact home retention dept. or loan negotiation rep.
  • Hardship letter, no more than 1 page, explaining how got into this situation.
  • At times required, but not always:

Utility bills

Copy of homeowners insurance

Title search of any additional liens

Property tax bill

  • If an FHA loan; form  HUD 90036 Application to Participate must be completed along with counselor meeting.
  • Verification of occupancy or info. on how long property has been vacant.
  • Must provide proof of insolvency
  • If first lien holder is not paid off in full, they will only give between $500- $2000 to the second lien holder, which the second also has to accept. 
  • The mortgage lender pays the realtor commission, if and when the short sale is closed.
  • Foreclosures are on one’s credit for approx. 7 yrs. Vs. Short Sales are on one’s credit for approx. 3 yrs.

Any questions please call:

Becky Nay, e-PRO, GRI, SFR
801-676-5815 Fax