What’s in a short sale seller’s hardship package?
Answer: A lot of paperwork. The bank will require you prove hardship and back up your story with documentation. If you are considering a short sale (see Short Sale Hardship–The Hard Part) you’ll need to begin your data collection sooner than later. Below is a list of what you’ll need:
- Hardship letter (written by you and explains your situation in a couple pages)
- Two year’s tax returns
- Most recent pay stubs (W2s)
- Profit & Loss Statement (if self employed)
- Household budget
- Three months of bank statements
- Copies of bills or other debt
- Personal or business bankruptcy documentation (if relevant)
- Anything else on your bank’s requirements list.
In order to determine your hardship package requirements, contact your lender’s short sale, loss mitigation, and/or homeowner’s assistance department. Any misrepresentation on the part of the borrower/seller can result in financial and/or criminal penalites. A lender may even refer to the original loan application to check on your story. So, proceed with caution and your integrity in tact.
Up next: Writing a good short sale hardship letter