Note: Collection of the documents below may require authorization for release of information from the seller.
When submitting a Short Sale request, the following documentation is required. It is important to note the collection of these documents may require an authorization for release of information from the seller, buyer or lending agency.
- First mortgage reduced payoff letter (mortgage company letterhead)
- First mortgage loan payoff statement
- Documentation stating that the net funds received from the sale of the property will not be sufficient to pay off the existing first mortgage; or itemized schedule of costs showing losses
- First mortgagee approval of or letter that the first lien holder is considering the Short Sale (mortgage company letterhead)
- Copy of appraisal, property evaluation or comparable analysis
- Purchase contract for the sale of the subject property (copy)
- Evidence of how long the property has been on the market
- HUD -1 Approval of Short Sale (when applicable)- or loan closing disclosure with closing estimates
- Hardship explanation from borrower
After staff has reviewed the above documentation a reduction in principle will be considered. In the circumstance of an investor purchaser, the City will consider up to a 25% principle reduction of the outstanding principle balance. If it is a homeowner to homeowner short sale transaction the City will consider up to a 50% principle reduction of the outstanding principle balance. The reduction of interest and fees will be considered on a case by case basis and based on staff's review.