Short Sale Hardship Packages–What’s Inside

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