Prepare the package
Complete, current and easy to review.
Lenders frequently request financial, property and transaction documents. Requirements vary, but organization helps prevent avoidable delay.
Common homeowner documents
- Mortgage statements for every loan
- Homeowner name, contact information and loan numbers
- Signed authorization allowing approved parties to communicate
- Hardship letter or written explanation
- Recent pay stubs or income documentation
- Recent bank statements for all required accounts
- Recent tax returns or requested tax forms
- Monthly income and expense worksheet
- HOA statements, liens and property-related judgments
- Foreclosure notices and relevant lender correspondence
Common transaction documents
- Signed listing agreement and disclosures
- Comparable sales or market analysis
- Fully executed purchase offer and addenda
- Buyer proof of funds or loan approval
- Estimated settlement or closing statement
- Repair estimates, when condition affects value
- Commission and closing-cost details
- Junior-lien payoff or approval information
- Any lender-specific forms
Freshness matters. Financial documents may expire during a long review. Keep originals and be ready to provide updated copies through a secure method.
Hardship letter
Tell the truth clearly and briefly.
A hardship explanation should connect the facts to the homeowner’s inability to maintain the current obligation or need to sell. It should not be dramatic, speculative or exaggerated.
A useful structure
- Identify the property and loan.
- State what changed and when.
- Explain how the change affects the ability to continue.
- Describe reasonable efforts already made.
- Explain why a short sale is being requested.
- Confirm that supporting documents are available.
- Sign and date the letter.
Possible hardship categories: job loss or reduced income, divorce or separation, medical event, death in the household, required relocation, increased expenses, business failure or another documented change. Each situation should be described accurately.
Agent package review
Before submission, confirm the story and the numbers agree.
- Names, loan numbers and property address are consistent.
- Every required signature and initial is present.
- Offer terms match the estimated closing statement.
- Commissions, concessions and buyer credits are disclosed.
- All liens and HOA balances are identified.
- Financial dates satisfy the servicer’s current requirements.
- Authorization forms name the correct parties.
- The agent retains a dated submission record.