The first thing that you should do would be to contact your lender immediately. Being proactive and informing the lender of your situation can help with future communications by showing your intent to resolve the matter with honesty and intent to satisfy the loan balance on your home to the best of your abilities. Secondly, you should contact a qualified REALTOR®, an attorney, and accountant. As a local REALTOR® and expert we may be able to recommend both an attorney and accountant to assist you with the activities in the process that requires a practicing law expert. 

You should also determine if you will actually qualify for a short sale by undergoing an analysis of your financial situation with a real estate professional that is experienced in Short Sales. Not all borrowers will qualify for a Short Sale and not all real estate agents are familiar with the Short Sale process and the time and energy that is involved with facilitating and getting approval on a Short Sale. If you are unsure as to if your situation qualifies you for a Short Sale, please contact us for a NO COST consultation. Please keep in mind that simply not wanting your home anymore does not constitute grounds for you to not meet your payment obligations. A true hardship will be needed for the lender to entertain a Short Sale.

There is numbers documentation that you may be required to provide to your lender. Each lender varies in required documents but some of this documentation may include the following:

• Third Party Authorization and Release  - Lenders will not disclose your personal information without your authorization to do so. The authorization letter should include the date, the address of the property, the loan reference number, your social security number, your name, your contact information, your real estate agent's name, your real estate agent's company, your real estate agent's contact information and your signature.
  
  
• Hardship Letter  - A detailed document of what has happened and why you are unable to meet your financial obligation will need to be submitted to your lender.
  
  
• Financial Worksheet  - A list of all of your monthly expenses and income will need to be documented and submitted to the lender. This financial worksheet should include any and all expenses that you incur. For yearly incurred expenses, simply calculate the monthly expense by dividing by 12.
  
  
• Proof of Income - Two months of bank statements, two months of savings accounts, and all information regarding investments, cash, and additional real estate you own, should be provided to your lender. Your lender will require full disclosure of your financial situation in order to determine that your debt is worthy of forgiveness.
  
  
• Tax Returns - Previous 2 years is typically required.
  
  
• Listing Agreement - A copy of the listing agreement signed by you and your real estate broker should be submitted to your lender. This listing agreement will document the terms of the listing of the property between the you and the broker.
  
  
• Purchase and Sale Agreement - Many lenders will not consider your Short Sale without an actual offer on the property. You should have all of the other documents submitted to your real estate agent so that when an offer is received, signatures are obtained and the entire Short Sale package can submitted timely and complete. The terms of the offer will be agreed to between you and the purchaser(s) but will be contingent on your lender's approval.
  
  
• Comparative Market Analysis (CMA) - When markets decline and property values fall it often affects your ability to sell your home at a price that will satisfy the total loan amount. Proving this information to a lender through a CMA report prepared by your real estate agent, will show the price of homes similar to yours that are currently on the market, are pending sale, or have been sold in the last six months. Again, a REALTOR® will be a valuable partner in providing you this information.

As your real estate professional, we will assist you with gathering all of the information required by your lender. Please feel free to contact us at any time for assistance!