short sale package?

Do short sales forms differ from lender to lender? Also, how do you obtain the forms? Thanx.

You dont need short sale forms from lenders… Most lenders require similar docs, you can actually call them and ask what they need in the short sale package.

Some lenders have actual Short Sale packages (IndyMac has a few forms they require) Others just want an authorization, and offer, and a hardship letter. Most want:

Auth (of course)
Hardship letter
2 months bank statements
2 months paystubs or letter of unemployment
1 yr W2s
1yr tax return

I always send that, along with a bunch of other stuff. News clippings, comps, pictures of the bad stuff, repair estimates, etc.

How do you do your repair estimates. Yourself or do you pay someone else to do them. If you pay someone else, then what kind of person do you get.

A “short sale Package or Packet” is generally misleading when people speak of it. The actual packet is not provided by the bank, rather the packet is what you create and present to the bank. When I begin a Short Sale I request all the information the bank will be asking for prior to my even contacting them. I give the homeowner a check list of these items and I explain why I need each one. I’ve done enough of these to realize that every bank requires the same information. Some banks require a little less than other but they all have the same items on their list. Even if you’re dealing with a bank that requires less than the standard it’s a good idea to give them everything. This makes your case seem more solid and can give you better chances at getting the payoff letter(s). There are some banks that will require additional specific forms most of the common banks do not. Depending on the bank and / or depending on the mood of who you are speaking they will give you a list of the basic items required some by fax and some just over the phone.

How do you do your repair estimates. Yourself or do you pay someone else to do them. If you pay someone else, then what kind of person do you get.

You can do it both ways. It’s always better when you have a 3rd party to verify the information you present to the lender in your short sale packet. If you do not have or can not afford a third party you can do the inspections and repair estimates yourself. I personally have a home inspection report I use. It looks professional enough that nobody ever asks me any questions. The repairs and rehab numbers I do myself also. I note the damages in the home inspection report and in the rehab report I cover the costs for repair / replacement.

Another way to show repair numbers is if the city in which the property is located has a point of sale inspection. I really like short sales in these types of cities because I can influence them just like one would influence a BPO / Appraisal. There are different ways of doing this but the point is to get as many Class A violations as possible. Generally these types of violations require money to be placed in escrow at the time of title transfer. This applies to banks as well as individuals. If the city POS has $30k in class A violations, someone is going to have to put that in escrow prior to sale. Because this report is done by a city official, no bank has ever complained or not taken the report into consideration.

Oh, and once you get your payoff from the bank go back to the city and order another POS prior to closing. This time you influence the POS to report little or no class A violations. This way you don’t have to have the money in escrow from the first POS report. Also, some cities who require POS allow the violations to be assumable. The banks don’t generally know that part. This means you can still sell the home, but the new buyer assumes the violations without putting the money in escrow and has to fix them within a time frame.


Foreclosure Negotiator is correct and has explained it very well. I have some sample short sale packages I could send to you if that would help. There are a few documents I create such as the Cover Letter, Net Sheet and Repair Estimates (I actually use a web site that generates the estimates for me). Send me a private maeesage if you’d like any of these examples.

Good Luck!


With experience you will find out which lenders do require their own ppwk. What I did when I first started was make a folder for each lender you deal w/ that has their own forms. That way you have the forms handy the next time you work a short sale w/ that lender and you won’t have to request them again. Also, keep a spreadsheet of contacts at each lender and as you talk to more and more lenders, add their contact info to the spreadsheet. The goal being in the future, as soon as you know which lender you are going to work the short sale with, you already know if they have their own ppwk, you already know what # to call and what fax # to fax the ppwk to! It gets easier and easier.

Hope this helps.