Short Sale Package 2025

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The document outlines the necessary steps and required documentation for homeowners seeking to initiate a Short Sale with Keller Williams Realty. It details the specific forms needed from borrowers, including authorization, mortgage statements, hardship letters, financial statements, and other lender-specific documents. The process is explained step-by-step, emphasizing the importance of submitting complete packages and maintaining communication throughout the transaction. Additionally, it sets expectations for sellers regarding property condition, tenant cooperation if applicable, and the overall timeline for processing a Short Sale.

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Click ‘Get Form’ to open the Short Sale Package in the editor.
Begin with the Borrower’s Authorization. Fill in all requested information, including names, property address, and loan details. Ensure you sign and date the form.
Next, upload your most recent mortgage statements for each lender. Make sure these documents include account numbers and original loan balances.
Compose your Hardship Letter. Use the provided sample as a guide but write your own unique letter explaining your situation. Sign and date it before submission.
Gather your last three paycheck stubs or statements. If self-employed, include a six-month Profit & Loss Statement.
Attach copies of your two most recent tax returns (Form 1040).
Include your last three months of bank statements, ensuring all pages are present and personal information is visible.
Complete the Financial Statement/Budget form and sign it. This document should reflect that your monthly obligations meet or exceed your income.
Review and sign any additional forms required by specific lenders, such as the Loan Modification Waiver and Seller Expectation Document.

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Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is a good offer on a short sale?

Its best to strike a balance between whats a good deal for you and whats reasonable for the lender. A price thats 5% to 10% below market value is typically a good number to put on the table. Venturing further down could be dangerous territory.

What is an example of a short sale?

For example, lets say a stock is trading at $50 a share. You borrow 100 shares and sell them for $5,000. The price subsequently declines to $25 a share, at which point you purchase 100 shares to replace those you borrowed, netting $2,500.

Is a short sale as bad as a foreclosure?

Reduced Damage to Credit: Although a short sale still negatively impacts credit scores, its generally less severe than a foreclosure, allowing sellers to recover more quickly.

What is the point of a short sale?

A short sale in real estate is an offer of a property at an asking price that is less than the amount due on the current owners mortgage. A short sale is usually a sign of a financially distressed homeowner who needs to sell the property before the lender seizes it in foreclosure.

What are the pitfalls of a short sale?

What are the Common Mistakes to Avoid in a Short Sale? Not Consulting Professionals Early On. Ignoring the Lenders Requirements. Setting an Unreasonably High Price. Failing to Disclose Property Issues. Ignoring Taxes Implications. Underestimating the Time Involved in Short Sale. Failing to Communicate with Your Lender.

Does the seller make money on a short sale?

Short sales typically do not provide cash proceeds to sellers. Instead, sellers benefit from avoiding foreclosure and potentially having their debt forgiven. Professional guidance is crucial in navigating the short sale process.

What is a short sale package?

In a short sale, the homeowner will submit a financial package seeking a lenders approval to sell the property for less than the amount they owe on it. Therefore, the homeowner enters into this process voluntarily, which isnt the case with a foreclosure.

Short Sale Package 2025

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