Beware..you will have to supply your financial documents! This is not an option, it is a requirement of a Short Sale. Your Financials will not be released to anyone other than your Listing Agent and your Lender.
Each Lender has a Lender Specific Financial information form similar to the one attached here. They basically want to know how much you bring in each month and how much you spend each month.
Note: Each person on the Loan must supply their financial information. Married couples as well.
Financial Documents your Lender will Require:
1. Financial Worksheet (see attached as an example)
2. Last two years Tax Returns..all pages.
3. Most recent two months pay stubs. If you are an independentt contractor, you will be asked to supply your Profit & Loss Statement for the past year.
4. Most recent two months Bank Statements: All pages for all accounts.
5. HOA information if you live in an HOA community.
6. If you are on Social Security, disabled, a Veteran, or receiving Unemployment Benefits, you will be asked to supply a copy of your award letter.
7. Personal Liens: You must be honest with your Listing Agent and disclose any personal liens that may exist against the property. IRS, Mechanics Lien, Home Equity Line, Divorce Decree? Any liens that are personal must be negotiated and a Release of Lien approved before the Short Sale can close.
Each Lender is a little different, but these are pretty basic for each Short Sale.
Short Sale Financial Documents Resource:
FREDDIE MAC 1126 FINANCIAL INFO B OF A (PDF)
I am not an Attorney. Please consult with your CPA, Financial Advisor or Tax Attorney for any questions regarding your potential tax consequences.
