Short Sale Financial Worksheet Information

By
Real Estate Agent with Keller Williams Realty

 When you request a short sale from the bank, the will request a great deal of personal information to be submitted along with the offer the purchase, cma, authorization letter, and listing agreement.  This is because the bank wants to know that you actually qualify for their short sale program.  Here is an example of some of the items that you will need to send in the package. 

Financial Information

  • Last 3 checking account statements for all borrowers
  • Last 3 savings account statements for all borrowers
  • Last 2 years of W2's for all borrowers
  • Income tax returns from the past 2 years for all borrowers
  • Last 3 paycheck stubs for all borrowers
  • IRS Form 4506
  • Self Employed: Profit and Loss statement
  • Credit Report - Get one actually for free from www.annualcreditreport.com

Summary of all monthly reoccurring debts for all borrowers.  This will be used to compile a financial worksheet.  Items to consider:

  • Auto loans
  • Alimony / Child support
  • All credit card bills
  • Electric bills
  • Gas bills
  • Water / Sewer bills
  • Heating fuel
  • Home telephone bills
  • Cell phone bills
  • Cable bills
  • Auto insurance
  • Health insurance
  • Life insurance
  • Doctor bills
  • Dentist bills
  • Pharmaceutical drug bills
  • Food / Groceries
  • Gasoline (auto)
  • Student Loans / Tuition
  • Other Loans
  • Other reoccurring bills

Hardship Information

A hardship letter that describes succinctly yet persuasively why you are now unable to make the mortgage payments.  We cannot write this for you. 

  • Documentation of hardship
  • Hospital bills
  • Doctor bills
  • Documentation of unemployment
  • Documentation of incarceration
  • Death certificate
  • Divorce decree

Sample Hardship Letter:

Re:  Hardship Letter/Short Sale for 123 Main Street, City, State 12345

To Whom It May Concern:

I purchased the property at 123 Main Street in March 2006.  At that time, I had just started my own antique resale business, which had great promise for generating profits capable of supporting my mortgage.  Unfortunately, sales were slow, which I attribute to great declines in tourism after gas prices skyrocketed.  I ran out of money, and began working as a waiter to make ends meet. At the same time I was redoubling my efforts in my own business, but to no avail. After struggling for months to make my expensive mortgage payments, I had no choice but to put my house on the market. In August of 2006, I put my home up for sale by owner at an original listing price of $210,000. The only people to look at the house ran when they saw the extensive damage to the pool and the severe water damage from a leaking roof that had long needed a replacement. I lowered the price, but still had no takers. Over the next couple of months I lowered the home price three times, finally settling at $170,000. This price was the lowest I could list the house at and still afford real estate agent commissions to be deducted, although it leaves me with no profit. The home still has no offers. I am working with a real estate agent now, who is listing my house and promises to push it to get it sold quickly. I believe that using an actual agent will ensure that the home sells promptly.

 I love my home, but I also understand that, at this point, I cannot afford it.  I am a single parent, now working as a waiter to survive.  My financial situation cannot sustain a home mortgage of nearly $2,000 per month.  I would like nothing more than to sell my home, avoid foreclosure, and salvage my credit. This is my main concern. I know that a foreclosure on my record will affect me for years to come. I would ask that you please assist me in avoiding this. 

Please accept this offer as payment in full.  My attorney has advised me to file bankruptcy, but I prefer to avoid further destruction of my credit.  I just want to move on and start over.

I deeply appreciate your help and understanding in this matter.  If you have any questions, or need anything further from me, please contact me personally.

Charlotte Real Estate

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Randy Hooker 02/06/2009 05:59 PM
  2. Virginia Hepp 02/07/2009 05:47 PM
Topic:
Home Selling
Location:
North Carolina
Groups:
Keller Williams Active Rain Bloggers
Keller Williams 'Rainers
Realtors®
Tags:
short sales

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Show All Comments
Rainmaker
745,085
Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

Hi Jonathan,

The topic of short-sales seems to be a hot one during these difficult financial times. I also recently posted a new entry to my blog regarding short sales...

Don't forget me if you learn of anyone moving to "The OC!"

 

Michael

(949) 753-7900

Feb 06, 2009 01:26 PM #1
Rainmaker
71,371
David Timm
Coldwell Banker Residential Brokerage - Fort Collins, CO
CRS, EcoBroker, GRI, ABR

The Short Sale situation is very difficult to start with.  Your post is sobering and informative.

Feb 06, 2009 01:32 PM #2
Rainer
30,772
Doug Aaserude
Inactive until May. 2009 - Beaverton, OR
Broker

short sales are so common now. they are a challenging situation that require urgency and care for the clients. its usually a very tough situation, but in the end it can be such a relief to the sellers in getting out of a home that they can not afford. lessons are being learned.

Feb 06, 2009 01:39 PM #3
Rainmaker
543,553
Diane Daley
Caron's Gateway Real Estate - Northumberland, NH

Very nicely done.  The list is very thorough and well thought out. Thanks for sharing

Feb 06, 2009 02:04 PM #4
Rainer
89,181
Randy Hooker
Dreamcatcher Realty / Greater Phoenix Area - Gilbert, AZ
Gilbert, Chandler, Mesa, Queen Creek

Very comprehensive and straightforward compiation, Jonathan.  Nicely done!

Randy Hooker - Dreamcatcher Realty - Arizona Real Estate

Feb 06, 2009 05:21 PM #5
Anonymous
Anonymous
Christina Starner

Hi Jonathan,

Thank you for taking the time to write such detailed information on Short Sales.  Your experience and education shows through!  Very informative article.

Please feel free to visit my web page on Short Sale information as well at www.SeeStarner.com.

Christna

Feb 06, 2009 10:36 PM #6
Anonymous
Anonymous
Anonymous

I'm hoping someone can help me here.   I made an offer here in GA on a non-approved short sale on Jan.19, 2009.  The listing agent said that the BPO did their appraisal a week or so ago.  Now he is saying that we have verbal approval and that the bank wants my response on a document that seems to be a standard WF form, (heading "Contract Addendum" and ends witha a paragraph stating "This (sic) parties agree that this Addendum together with the Sale Contract shall constitute  the entire and sole agreement between the Parties with respect to the sale of the subject property and supersedes any prior agreements, negotiations...) No closing date or any other timeline is mentioned in the addendum except that I and the seller must have all our arrangements final within 30 days after the final approval is received from WF. Does anyone recognize the wording of this form?

       I have $1.000 earnest money in this, and I wonder if I risk forfeiting that if I sign this (the addendum that supercedes all other addendums), and then WF drags this out for months until I have no choice but to walk away.

   On the other hand, our closing date we extended to 21 Mar.  If they go past that, don't they have to establish a new closing date with us, and if not, I can give a one week warning requesting a firm closing date or I will send a notice of Agreement Termination? 

  I'm inclined to go ahead and sign it, but my wife is worried we'll lose the earnest money.  What do you think?  Thanks for any advice you can offer.  If you want to see the addendum, I can email it to you as an attachment, or in this block.

Warren

 

Mar 08, 2009 11:56 PM #7
Anonymous
Anonymous
Warren

I'm hoping someone can help me here.   I made an offer here in GA on a non-approved short sale on Jan.19, 2009.  The listing agent said that the BPO did their appraisal a week or so ago.  Now he is saying that we have verbal approval and that the bank wants my response on a document that seems to be a standard WF form, (heading "Contract Addendum" and ends witha a paragraph stating "This (sic) parties agree that this Addendum together with the Sale Contract shall constitute  the entire and sole agreement between the Parties with respect to the sale of the subject property and supersedes any prior agreements, negotiations...) No closing date or any other timeline is mentioned in the addendum except that I and the seller must have all our arrangements final within 30 days after the final approval is received from WF. Does anyone recognize the wording of this form?

 

Sorry, I forgot to include my email.  Here it is.

warrendunklin@comcast.net

Mar 08, 2009 11:57 PM #8
Rainmaker
1,888,817
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

This is a great post. Thanks for sharing. I am sure many agents and sellers will benefit from this.

 

 

Apr 16, 2009 07:39 AM #9
Rainmaker
375,701
Kerry Lucasse
eXp Realty - Nest Atlanta Team - Atlanta, GA
Your Nest Atlanta Real Estate Consultant

Jonathan, THANK YOU for the very helpful information!  I keep reading about the "Wells Fargo Financial Worksheet" -- do you know if there is an "official" form that needs to be used, or do you just create one for your clients based on the information above.

Again, thank you for the invaluable info!

Jun 05, 2009 10:14 PM #10
Rainer
158,182
Paul Weir
SRG Realty - Grass Valley, CA

Hi Jonathan,

Doing some research on an unusual short sale listing I am signing tomorrow. This post was a great read.

Thanks for taking the time to post this up to Active Rain.

Paul Weir
United Country - Town & Country Realty
Grass Valley, CA

Mar 20, 2010 08:30 PM #11
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Rainmaker
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Jonathan Osman

Charlotte House Hunter Group
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