Submitting Your Short-Sale Package
Following your initial contact with the lender's representative, it is time to submit your short-sale purchase offer. Your package should include:
Authorization to release form, signed by the homeowner
Cover letter that summarizes the proposed short-sale transaction
Defaulting borrowers hardship letter
List of comps (comparables)
List of repairs/problems with the property
Photos of needed repairs and property deficiencies (photos show as-is condition)
Borrower's current financial statement
Supporting documents to support the financial statement (bank accounts, pay stubs, tax returns, unemployment insurance payments, workers comp payments, medical bills, divorce decree)
Purchase agreement between you and property owner
Completed proposed HUD-1 Settlement Statement
The most recent version of the HUD-1 Settlement Statement is available free at
Your cover letter should resemble something like this:
Dear Mr. Martin:
It was a pleasure speaking to you earlier today about Tom and Sue's unfortunate financial situation.
I have enclosed the short-payoff package for your review. This is for the payoff of your loan number 111112 for the property located at 191919 Sandy Drive, Philadelphia, PA.
My proposed purchase price of $102,550 is based on the following:
Your borrower is insolvent.
The recent comparables set the value of this property at $118,000.
(See attached list.)
Two contractors have estimated needed repairs at $15,000.
Property values in the area are falling. See the enclosed newspaper article that was recently published about the real-estate prices in the area declining since the loss of three local employers.
I am ready to close on this property within five days of your acceptance of my offer. I have the funds available to make full cash payment. My purchase offer remains in effect for the next three days. Please call me with any questions. I look forward to hearing from you.
Sincerely,
Mary J. Johnson
