"Contract Authority remains available for existing members to use but is not currently accepting new memberships."

Short Sale


This packet includes the following documents:

  • Property Information Sheet
  • Borrower's Authorization to Release Loan Information
  • Residential Purchase Agreement (buyer-friendly)
  • Seller's Disclosure Statement
  • Bill of Sale
  • Sample Hardship Letter

This packet is used by:
The Short Sale Package is used to buy a property on short sale, where you request the bank
to take much less than the amount owed on the mortgage in full satisfaction of the mortgage.
The process of being approved for a short sale by the bank is not a fast one. The Seller has to
show hardship and convince the bank that the short sale offer is the best one that they wil get.
The property has to be on the market for a certain length of time before the bank will approve a
short sale.

The Documents:

Propert Information Sheet
The Property Information Sheet is a convenient place for you to record the basic information
you will need about the property and the homeowner to go through the short sale process.
Keep this in your files for quick and easy access.

Borrower's Authorization to Release Loan Information
This document is submitted by the Seller to the Seller's Mortgage company to permit you to
speak to the mortgage representatives and receive information about the mortgage. The
document is authorizing the bank to disclose otherwise confidential financial information and
without this authorization the bank wil not talk to you.

Residential Purchase Agreement
The Residential Purchase Agreement is a buyer-friendly purchase agreement and establishes
the rights of both the Buyer and the Seller. The contract shouid be completed with care and
every space requiring information should be filled in completely or with the insertion of the
symbol "n/a" meaning "not applicable." Once the required information in the document is
inserted and the agreement is signed by both parties, it cannot be changed by either the Buyer
or the Seller without the written consent of both parties. Both parties should have a copy of
the completed and agreement.

Seller's Disclosure Statement
The Seller's Disclosure Statement is the document used to disclose defects and problems with
the property. Give this to your Seller and ask for it to be completed and returned as soon as
possible. As a Buyer you do not want to be surprised after close when you find a very
expensive repair on your hands that you did not know about.

Bill of Sale
The Bill of Sale is the document that transfers interest in personal property (as opposed to real
property) from the Seller to the Buyer. The personal property that is identified in Exhibit A to
the Residential Purchase Agreement should be the property identified on the Bil of Sale. Only
the grantor, meaning the seller of the property, need sign the document, but it should be

Sample Hardship Letters
The bank is not going to accept a short sale just because the owner got into financial straights.
The bank must be convinced that there is a good reason for the default, that the owner is
trying in good faith to work out the problem and that the short sale offer is fair and makes more
financial sense than foreclosure proceedings. Because a bankruptcy can tie the property up
even more, the threat of bankruptcy may help convince the bank that a short sale is in
everyone's best interest.