Loss Mitigation Blog

Each bank has its own short sale requirements, but the following will come in handy in most cases:

A letter of authorization: Lenders may need to disclose some of your personal information, but they need your written approval to do so. Submitting one with your initial application can save you at least a couple of weeks of waiting time.

A preliminary net sheet: This is basically a formal estimate of what you expect to get from the short sale, including payments due, late fees, unpaid balances, and the total costs of sale. If you’re working with an agent, he or she can help you draft your estimate.

A hardship letter: Here, you explain in writing how you fell behind and why a short sale is your best option. Note that you need a valid reason to qualify for loss mitigation assistance—some of the most common are job loss, illness, or a death in the family.

Financial documents: Your lender will want a clear picture of your financial situation, so provide whatever proof you can. Bank statements, tax forms, and pay stubs all qualify as financial proof. Your lender or loss mitigation attorney can give you a more specific list.

References:
Short Sale Loss Mitigation