Anatomy of s Short Sale--A short sale is a situation in which the seller owes more money on the loan than the sale of the property will likely produce on the market and is unable to bring money to the closing table. The seller may or may not be in pre-foreclosure.
Hardship must be defined--job loss, business failure, illness and medical costs, divorce or death of a spouse will be considered hardship by the lending institutions. Also, homeowners must seek the advice and services of qualified finance, tax, and legal professionals. Their expertise is essential.
The Short-Sale Package--this package should include a letter if hardship (explain in detail your situation and be honest); W-2s and/or tax returns for the last 2 years; pay stubs; bank statements and credit reports; proof of any assets-stock, bonds, mutual funds, retirement accounts, real estate and liabilities-personal loans and credit card debt, IRS liens, judgements and lawsuits.