Short Sales

When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Here are some of the Documents you will need to submit for a short sale with your lender:

Submit Letter of Authorization
Lenders typically do not want to disclose any of your personal information without written authorization to do so. If you are working with a real estate agent you will receive better cooperation if you write a letter to the lender giving the lender permission to talk with those specific interested parties about your loan. The letter should include the following:

Property Address
Loan Reference Number
Your Name
The Date
Your Agent's Name & Contact Information

Hardship Letter
This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than full payment.

Proof of Income and Assets
Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value.

Copies of Bank Statements
Your lender will require a copy of your bank statements to help assess your hardship.

Comparative Market Analysis
Sometimes markets decline and property values fall. If this is part of the reason that you cannot sell your home for enough to pay off the lender, this fact should be substantiated for the lender through a comparative market analysis (CMA). Your Alliance One Real Estate Professional can prepare a CMA for you, which will show prices of similar homes:

Active on the market
Pending sales
Solds from the past six months

Purchase Agreement & Listing Agreement
Purchase Agreement & Listing Agreement When you reach an agreement to sell with a prospective purchaser, the lender will want a copy of the offer, along with a copy of your listing agreement. With all the required documents submitted to the lender and with the right negotiation skills from your Alliance One Real Estate professional, the lender should approve your short sale.