Short Sale Package

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Preparing to short sale your property requires that you follow a very specific list of steps during this process.  Having received professional counseling and decided that a ‘short sale’ is the right choice for you, the first step, if you haven’t already done so, is to choose a realtor. Choosing the right realtor to assist in your short sale is a crucial part of the whole process, we recommend that you use a realtor that has experience with short sales and has successfully closed many short sale transactions. The realtor that helped you buy your home won’t necessarily be the best choice for your short sale.

These transactions require additional knowledge and experience.  A clear understanding of this document is crucial.  These following documents should be ready for submission:

The following items needed to be provided by homeowners.  These are MUST have items.

  1. Hardship/ Short Sale Letter
  2. 3rd Party Authorization
  3. Last 30 days pay stubs
  4. Last 2 months Bank Statements
  5. Last 2 years tax returns
  6. Financial statement


1. Hardship Letter / Short Sale Letter:

This is a letter that you will type or hand write to the attention of your bank that explains the situation that has caused your delinquency.  The letter should be as brief as possible and should be one page max.  This letter can make or stop the bank from agreeing to release you from your mortgage debt for less than you owe.  You should begin by explaining how your income has changed since you purchased this property.  Also, state that you cannot make any payments, or will not be able to make any payment in the near future.  Let the bank know that it is not an option to borrow from family and friends and that a short sale is the only option you have.    Click Here to view sample of our short sale / hardship Letter.


2. 3rd Party Authorization:

To make contact with your lender and authorizes your lender to share information with your attorney or realtor.  Complete one for each loan.

  • Name of the lender
  • Account/Loan Number
  • Property Address
  • Borrower’s Name
  • Borrower’s Social Security Number
  • The authorized party’s name
  • Borrower’s Name, Signature and Date

Click Here to view sample of the form


3. Last 30 days Pay Stubs from Each Borrower:

In cases where you are unemployed, collecting unemployment, then provide evidences from EDD. In cases where you do not receive income you will need to write a statement, which will state that you are not receiving any form of income.For self-employed you will have to show a profit and loss statement.


4. Last 2 month Bank Statements:

This may include checking accounts, savings account, and any other cash account details.  The bank statement will also carries information about your life style which may include current spending habits, so if you are having hardship it will show on the bank statement.


5. Last 2 Years Tax Returns:

If you have already filed an extension of the latest tax year, a copy of the extension filing will be required. However, in cases where you have not file tax return you need to write a statement to show that you did not file tax return.  Lenders will require homeowners to send in form 4506T (Request for Transcript of Tax Return).   Click here to view the 4506T Form.


6. Financial Statement:

This is a worksheet that all borrowers need to fill out, sign, and date. Your lender wants to see a list of all of your assets and all of your liabilities.  This will help the lender to assess your current financial situation. It also helps to explain why the mortgage can’t be paid.

Please understand that many banks have their own format for the financial statement.  Please check our website under the page “ Short Sale Forms” to find the financial statement from your lender.   Some banks will accept homeowners use a general format of financial statement.  Click here to view and download form.

Please remember that the numbers on the financial statement should match with the bank statements, pay stubs and etc.  For example, the homeowners state how much they make each month on the financial statement, so the numbers must match with the pay stubs and the bank statements.


The following items need to be provided from the realtor.

7.    Purchase Agreement
8.    Listing Agreement
9.    Buyer’s Proof of Funds
10.  HUD


7.  Purchase Agreement:

This is a legal contract that obligates the buyer to buy and the seller to sell the property.


8. Listing Agreement:

This is the document that the owner of the property signs to give the broker the right to offer the property for sale. This agreement will contain the following: A beginning date and a termination date. The list price at which the property will be listed for sale.  In addition, other terms which may appear in the agreement can include: Authorization for the broker to post a sign, to advertise the property, and to put a lockbox on the door, as well seller’s obligations to advise the broker on the condition of the property, and broker’s obligations to advise the seller about regulations and laws which may affect the sale.


9. Buyer’s Proof of Funds

This is the document that the seller of the property will require from the buyer.  This will prove that the buyer has enough funds to cover the purchase price of the property. This can be a bank statement, savings account, investment or retirement account that shows the total amount available.


10. HUD

This is a form used by the settlement agent to itemize all charges imposed on a borrower and a seller for a real estate transaction.  This form gives each party a complete list of their incoming and outgoing funds.  Fees associated with the transaction but paid prior to closing are also included in the form.

Having all these documents will definitely increase your chance of having a short sale for your property approved. Remember that, more than anything else, all of these documents are required  to complete your short sale.

To get the best results for your short sale packages you need the services of an expert!  At Feng Shui Investments, we are experts in short sales, and we can help you get the best results – you just have to give us a call or send an email to get started!

Call us NOW to get help for your Short Sale Package needs. Call 800-692-1688 or email us on   You’ll be glad you did.