Checklist for Short Sale Packages

Frank Chen

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got quick video on what is needed to complete a short sale package.

What Is a Short Sale Package?

All of the documentation needed to start a short sale
Usually submitted by a real estate investor on behalf of a seller
Only way to get approval from the lender

What Is Included in Short Sale Packages?

Authorization to Release Information
Seller's Hardship Letter
Executed Listing Agreement – DOM, brokerage, commissions
Executed Purchase Contract
Pre-approval letter
Copy of the earnest money
Financial Information
Assets – real estate investments, stocks, bonds, 401k
Liabilities – real estate loans, credit card debt, personal loans, liens
Monthly Expenses – utility, car, medical, tuition, etc.
Employment Information – Pay Stubs (2),W-2's from last 2 years, Employment history
Broker Price Opinion (BPO)
Comparable Market Analysis (CMA)
Estimated Net Sheet (HUD-1) – sales price you expect to receive and all the costs of sale, unpaid loan balances, outstanding payments due and late fees, including real estate commissions, if any.
Repair Estimates with Pictures

How Should Short Sale Packet Be Submitted (method, presentation)?

Follow lender's instructions
Binder and Tabs
Cover letter
One tab for each topic
Organization – order will be based on the above list “Short Sales Package”
Multiple parties involved so follow-up is key to faster closings
Avg Acceptance – 1-3mo

Before submitting your short sale package to the bank, it is very important to have all of your documents in order. If the package is incomplete, the short sale process will be delayed. In this event, the bank might even shred the package. Just understand, short sales take patience and diligence, and banks are usually getting swamped with requests. So always be sure to follow-up and ask lots of questions, because ONE mess up could cost you the deal.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.