About Me

I have been aTrainer & Educator since 1983. A textbook that I was asked to author in 1986, Maine Real Estate Principles and Practices, is now in its sixth edition. Have been a Member of REEA - Real Estate Educators Association since 1996. Over the last ten years I have been a Member of a Real Estate Commission Task Force for the following core courses: Diversity and Fair Housing, Offers and Counteroffers, Agency, New Laws and Rules 2006

Thursday, June 14, 2007

Required Documentation in a Short Sale

A short sale is the sale of a property for less than the total amount necessary to satisfy the mortgage obligation resulting in a shortfall. Lender requirements for agreeing to a short sale may differ from institution to institution but the following may be required:
  • The original completed Form 1126, Borrower Financial Statement
  • The original signed borrower's letter of explanation and documentation of involuntary inability to pay.
  • A copy of the borrower's two most recent paystubs or vouchers indicating year-to-date earnings
  • A copy of the borrower's signed federal income tax return for the previous year, with all schedules
  • A copy of the listing agreement
  • A copy of the fully executed sales contract with addenda stating that the property is being purchased in "as-is-condition and conditional upon lender approval
  • A breakdown of the seller's estimated closing costs