A short sale involves demonstrating that the owner is insolvent or unable to continue making his payments. Proving this requires forwarding the lender stacks of documentation including all personal financial information.
The lender will also require a BPO, a Broker’s Price Opinion indication what the real estate professional believes the true market value of the property is and what it can be sold for. The lender will also require a closing statement, title report, and a signed copy of the purchase agreement from buyer to seller. The lender may also require a copy of the buyer’s loan application or preapproval letter.
Do your research to determine how many lien holders there are and if this is the senior lien holder you’re negotiation with. Typically, you will not want to deal with junior lien holders and if you do you will not be interested in anything less than a “pennies on the dollar” settlement.
All this information and more must be packaged and professionally present to the appropriate contact person at the lender’s office.