Know what you need ahead of time. 

Every lender requires a complete package before they will review — let alone approve — a short sale. A missing document does not just slow things down; it can restart the review clock entirely. The good news is that you do not have to figure this out alone. Jim will walk you through each item, tell you exactly what is needed, and provide templates for the pieces you do not have to find yourself.

This is a letter, in your own words, explaining the financial circumstances that have made it impossible to continue making mortgage payments. It does not need to be long, but it needs to be specific — dates, events, and how your situation changed.

Jim will let you know what is most relevant based on your lender and loan type.

Jim will provide a template to help you structure it so the lender has exactly what they need, in the format they expect.

Checklist of items to support if applicable to your situation:

  -  termination notice

  -  medical bills

  -  divorce decree

  -  any other relevant documentation

Lenders need to verify your income, assets, and expenses before approving a short sale. You will gather these yourself, but Jim will give you a clear list so you are not pulling together more than necessary. This typically includes your two most recent federal tax returns, two months of bank statements for all accounts, and two months of pay stubs. If you receive Social Security, a pension, or disability income, bring the most recent award letter.

If you are self-employed, a 12-month profit and loss statement is required in place of or in addition to pay stubs.

Jim also provides a financial worksheet template that organizes your monthly income and expenses in the format lenders use — so you are not completing a blank form from scratch.

Checklist of items to support if applicable to your situation:

  -  two most recent bank statements

  -  two most recent feder tax returns

  -  two months of pay stubs

  -  if self-employed, 12-month profit and loss statement

  -  most recent social security, pension, disability income letter

  -  financial worksheet - income and expenses

Jim will help you pull together the documentation specific to your property. The most important item is your current mortgage statement — and if you have a second mortgage, home equity line, or any other lien on the property, those statements are needed too. Every lienholder has to approve the short sale before it can close.

If your home is part of an HOA, a current account statement showing dues and any amount owed is required. Jim will also document the property condition as part of the listing process, so you do not need to prepare a formal repair list on your own.

Checklist of items:

  -  two most recent mortgage statements

  -  most second mortgage statement, if applicable

  -  most recent home equity line of credit (HELOC) statement, if applicable

  -  HOA current statement, if applicable

Before Jim can speak with your lender's loss mitigation department on your behalf, you will sign a third-party authorization form. Every servicer uses their own version of this form — Jim will provide the correct one for your lender so there is no back-and-forth. This is one of the first things completed together, because nothing moves until it is on file.

You will also sign a listing agreement and, once an offer is received, an arm's length affidavit confirming that the buyer and seller have no prior relationship that could influence the sale terms. Jim will walk you through each of these when the time comes.

Checklist of items:

  -  two most recent mortgage statements

  -  most second mortgage statement, if applicable

  -  most recent home equity line of credit (HELOC) statement, if applicable

  -  HOA current statement, if applicable

If you have a second mortgage, a home equity line of credit, an IRS lien, or unpaid HOA dues, each of those lienholders has to approve and be part of the short sale. This is one of the most common reasons short sales fall apart, and it is also one of the first things Jim will check. Knowing what is on the property early means planning for it — not discovering it two months in.