Short Sale Resources for Homeowners

Authorization To Release Information

Authorization to Release Information – This document is signed by the homeowner and authorizes the investor/Realtor to speak with the mortgage company on behalf of the homeowner. It is the first document you need in order to get the process moving.

Hardship Letter – This is a letter composed by the homeowner that explains to the mortgage company the circumstances that have led to the missed mortgage payments. The homeowner needs to make it clear that there is no hope of curing the default and a short sale is the only option. It is best if this letter is hand written, but a typed letter is fine. The letter should be at least one page long and be emotionally moving

Hardship Proof – These are documents that support the hardship letter explanation. For instance; a repossession slip, a layoff pink slip, doctor bills, death certificate, divorce papers, bankruptcy papers, police report, etc…

Financial Statement – This is a one-page document that states the monthly income and expenses of the homeowner. This includes food, utilities, clothing, car, phone, etc…

Bank Statements – Most mortgage companies will require the last two months bank statements for both checking and savings. They are interested in verifying the deposits and withdrawals against the financial statement.