Short Sale Package
Short Sales in Colorado require specific documentation to be sent to the lien holders on the property. Most banks will not review an incomplete short sale package, so it is important to submit the proper documents all at once. This will help speed up the process and make it easier to negotiate the short sale.
As with any real estate transaction, there is a substantial amount of paperwork. There is documentation required from the homeowner that will help demonstrate to the lien holder that they have a hardship. There are also contractual documents that are required from the real estate agent so the property can be legally listed and sold. All of the contracts that Short Sale Colorado uses are approved by the Colorado Real Estate Commission.
The following list is for reference only and may not be considered all-inclusive. You may be asked by the lien holder to provide additional documentation that does not appear on this list. Please contact Short Sale Colorado with any questions you may have about the documents and contracts required for a short sale.
Documents from the homeowner:
Authorization to Release Information-This allows us to speak to your lenders on your behalf.
Hardship letter-This is your opportunity to explain your situation to the banks why they should allow you to do a short sale
Financial Statement-This will demonstrate your inability to continue to pay on the loan(s).
Bank Statements-You will need to provide your last 2 months of bank statements.
Pay Stubs-If you are employed, you will need to provide your last 30 days of pay stubs.
Tax Returns-You will need to provide your last 2 years of your Federal Tax returns.
Bank Workout Package-Some banks have created specific document packages that they require to review a short sale.
Mortgage Statement-These are not required by the bank, but the information on a mortgage statement allows Short Sale Colorado to better negotiate the short sale.
Contractual Documents:
Listing Agreement-This is the agreement between the real estate agent and the homeowner that allows us to list the property on the MLS and the internet in order to find a buyer.
Contract to Buy andSell-This is the agreement between the buyer and the homeowner that the home is being sold to the buyer.
Short Sale Addendum-This document outlines the definitions and laws governing short sale transactions. It explains the rights that the buyer and seller both have in a short sale.
Additional Addendums and Disclosures-There are other addendums and disclosures that are required for any real estate transaction in Colorado. They include, but are not limited to: Source of Water Addendum, Seller’s Property Disclosure, Square Footage Disclosure, and Closing Instructions.
