What information will a lender require from a homeowner in order to consider a short sale?

By Erin Meehan

Hardship Letter:   Explains why you can no longer make your payments, Ex. Loss of job
Personal Financial Statement:   The lender is looking for your monthly income and expenses to determine how much money you have to make your mortgage payment.
Last Two Bank Statements:  The lender will be looking for additional income or diversion of funds.
Last Two Pay Stubs:  The lender will be looking to see if these amounts support your financial statement
Last Two W2s:  The lender wants to see what your past income was and if your situation has changed as indicated on your financial hardship letter.
Last Two years’ Tax Returns:  These should support the past income and former ability to pay the mortgage.
When a short sale professional assists you, they should check these statements to make sure that the numbers effectively support your case for a short sale!