Sequence of events to get docs to bank

I am doing a short sale. The house is valued at $190K and I am offering $I05K. Are these the only documents I need to have?

Listing Agreement -
Purchase Contract
Letter of Authorization
Bank Statements
Tax Returns
Letter of Hardship
Proof of Income
Financial Statement

  1. Which contract do I use - a regular As Is contract or a Quit Claim deed. If a Regular contract, what price do I put on the line that says “Purchase Price”

  2. What is a “HUD/net sheet” and how do I get that?

  3. When I have all these ducks lined up - what is next in the sequence of events?

You need to speak to the sellers lender.

1A. Quit Claim Deed is not a contract as it is just changing ownership of the property. You need to use whatever contract necessary to meet all FL law. Do you have access to a real estate agent. You need to speak to a professional. You could leave yourself liable or not covered in case of complications.

2A. HUD or Net Sheet shows the bank what it is going to net. It could be written on a napkin but you could also look on the DRE or Other Government site. Google it!

3A. It should be apparent at that time.

I would suggest that you be careful as it does not seem that you have any experience doing this. You should tag along with people that DO know what they are doing. This could be a costly mistake.

We have seen many times that people that take the FSBO route don’t always work out well. Season yourself first with experience. If not your going to get a RAW deal.

Best of luck.

If the house is valued at 190K FMV, I doubt the bank is going to make a deal for 105k

Unless you meant the house sold previously for 190K and is now worth much less.

Ill take a guess and say the bank will take somewhere between 85-90% of FMV.

I would love to see some educated opinions about the percentage of FMV that the bank requires.

If someone has info On Chase inparticular that would be really interesting.

The short sale approval will hinge upon the BPO, ordered by the bank, to determine value. Your job is to influence the BPO agent as much as possible. If you have comps showing recent sales for 105K in this area, your position is strengthened. Also, I didn’t see a list of repairs needed for the property.

I tend to agree. It sounds like you may be a “newbie” and attempting a short sale with no experience is a sure guarantee that the deal will probably not happen.

You seem to have a complete list of the necessary documents, however, you never know what else the bank will ask for.

To get a HUD 1 in Excel format drop me an email and I will forward one to you. However, if you do not know what a net sheet is it will be very difficult for you to fill it out correctly.

As far as your sequence of events, my concern is what are you going to do if the bank accepts your offer or comes close? Have you laid our an exit strategy? Are you planning to close yourself and hold or flip? Are you going to lay our a simultaneous closing with a funded front enc?

You need to be clear on your exit before you buy. Your exit will determine the price you can pay on the buy side.


You can’t just blindly try to get it right, you could later be tied up in litigation for years saying, “But I didn’t know…!”

Make some phone calls, drop in some offices, but you really need to get an experienced Real Estate agent or broker to walk you through the transaction and make sure all the required documents for your state are being signed.

Can you hire a broker’s expertise for a couple of hundred dollars? Is there a title or escrow officer who will help you? You need to get the paperwork right. There are people right there in your town who know how to do it right. Your job is to find one fast. You can do it!

Good luck