The Process

The short sale process can be very confusing because it is not as simple as a regular real estate transaction. Typically the short sale process takes longer because you have to deal directly with the bank and gain their approval to sell the home. When a client makes an offer to purchase a real estate short sale they do not have the benefit of getting a quick response like they would from a regular seller.

Requirements

The short sale process begins with the homeowner having to show that they are eligible and qualify for a short sale.
All lenders typically require the following:

2 years of tax returns
2 years of W2’s
2 months most recent bank statements for all accounts
1 month most recent pay stubs
a hard ship letter
financial worksheet
listing agreement
purchase contract

Approval

The process of getting approved for a short sale is the exact opposite of what a borrower goes through when they are trying to obtain financing. When a homeowner is trying to get the bank to approve them for a short sale, they have to show the bank that they have made every attempt possible to try and make the payments but can no longer afford them.