Short Sales have short sale specific documents that must go to your Lender as part of the Short Sale package. Your Short Sale Listing Agent will put together all your documents and submit them to your Lender. Each Lender has their own “Short Sale Package” that they require when an offer is submitted.
These are Short Sale Specific forms that are submitted with your offer:
1. Short Sale Addendum: (SSA). This Addendum has California state specific information regarding the Short Sale offer. Buyers and Sellers sign it.
2. Short Sale Information Advisory: (SSIA). This information advisory is NOT required at this time by most Lenders, but I advise my Buyers to submit it with their offers. It is a more specific and detailed Disclosure regarding Short Sales and how they work. Buyers and Sellers sign.
3. Loan Pre-Approval: As with any purchase with a Loan, the Lenders want to see the Pre-Approval..it must be dated very close to the date of the RPA (Purchase Contract)
4. Proof of Funds: Proof of Funds for the down payment or Ernest Money Deposit must be submitted at the time of the offer.
5. Buyer Information: Each Lender is different, but Buyers need to clearly state their name, address, contact phone. Some Lenders require Date of Birth and the first 5 digits of each Buyers’ Social Security number.
6. Buyer Agent Information: Buyer Agents must fill in all their information clearly. Name, office name, all contact information.
7. Arms Length Documentation: Each Lender has a specific Arms Length Document which each party to the transaction must sign and some Lenders even require that it is notarized. See example attached.
Each Lender is a little different, but these are pretty basic for each Short Sale.
I am not an Attorney. Please consult with your CPA, Financial Advisor or Tax Attorney for any questions regarding your potential tax consequences.
Short Sale Package Resource:
Citibank Arms Length-submit with offer (PDF)
