Colorado Springs Vintage Homes Blog

What’s in a short sale package?

One of the most important steps in a successful short sale, is putting together the short sale package which will be submitted to the lender. A complete package can make the difference in how long it takes to get a short sale submitted.

A recent short sale package I submitted to a lender was 76 pages in length. 

What should be included in a short sale package?

Interested in selling your house as a short-sale?  Email Kathy Torline  KTorline@msn.com or call 719-287-1049

Packages can vary lender by lender, but the following is a basic check sheet of what should be included in a short sale package. Lenders will tell you to send a complete package.

__ Hardship Letter

This is a letter written by the seller to explain the borrower’s situation and requesting a short sale. It should describe why the borrower cannot make their mortgage payments and their fear of possible foreclosure.  It should be a plea for the lender to consider a short sale.

__ Sellers Authorization

This gives the Realtor (or whoever else you designate) authorization to act as your representative in taking to the lender. Colorado has an approved Real Estate document, Seller Authorization Form

___ Paycheck Stubs – Last 2 months

___ Bank statements – Last 2 months

___ W2’s – Last 2 years

___ Tax Returns – Last 2 years

___ Detailed list of monthly expenses vs income, summary of assets and liabilities

Some lenders have a specific format for this information

___ Signed Real Estate listing agreement

In Colorado, this document is called an Exclusive Right to Sell.

___ Signed Contract to Buy/Sell, most lenders wanted an executed contract with both the buyer and sellers signature

___ HUD-1 from a Title Company reflecting the numbers and the net to the bank on the offer

Optional Items

__ Comparable Property Information

__ A Cover Letter with the number of showings and summary of marketing efforts

__ Pictures of the property, especially if the property needs substantial work

I also put a label on each page of the package with the Borrower’s name, Loan #, and Page #.

The above information is to be used as a general guide and is by no means to be used as legal or tax advice.

• Colorado Springs Homes, 4 things to know about a short sale - Part I of Short Sales Series
• Avoid Foreclosure, Know Your Options - Part II of Short Sales Series
• Colorado Springs Home Foreclosures – 11 benefits of a short sale - Part III of Short Sales Series
• The final step in the Colorado Foreclosure process – Part IV of Short Sale Series 
• How long does it take to do Colorado Springs Short Sale? – Part V in Short Sale Series
• Are there tax ramifications to a Colorado Springs short sale? - Part VI in Short Sales Series
•  What you MUST know about short sales on FHA loans – Part VII in Short Sale Series

  If you enjoyed reading this article, why not Subscribe to be notified of the next one? 

Kathy (719-287-1049)   KTorline@msn.com

Tags: colorado springs co real estate, colorado springs co realtor, colorado springs colorado real estate agent, colorado springs realty, colorado springs short sales, short sale package, short sales in Colorado Springs

This entry was posted on Monday, January 12th, 2009 at 6:00 am and is filed under For Sellers, Foreclosures and Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. property casualty insurance said at June 21st, 2011 at 9:30 am

   Great Site……

   [...]check this out as this contains important information about[...]…

2. bottle service said at September 26th, 2011 at 8:37 am

   Links…

   [...]Sites of interest we have a link to[...]……

3. modern warfare 3 cheats said at November 9th, 2011 at 8:46 pm

   Links…

   [...]Sites of interest we have a link to[...]……

4. discount domain buy said at November 12th, 2011 at 8:13 am

   You should check this out…

   [...] Wonderful story, reckoned we could combine a few unrelated data, nevertheless really worth taking a look, whoa did one learn about Mid East has got more problerms as well [...]……

5. summer student exchange said at November 20th, 2011 at 1:52 am

   Websites you should visit…

   [...]below you’ll find the link to some sites that we think you should visit[...]……

6. NIR analyser said at November 25th, 2011 at 12:40 am

   Sources…

   [...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]……

7. desportivos said at December 1st, 2011 at 12:12 am

   Websites we think you should visit…

   [...]although websites we backlink to below are considerably not related to ours, we feel they are actually worth a go through, so have a look[...]……

Leave a Reply