What Is a Short Sale Package?

A short sale package is a term used for documents that are submitted to a mortgage lender by a homeowner, seeking the lender’s authorization to do a short sale. A short sale occurs when a home is sold for less than what is currently owed on the loan and the seller is also unable to pay the difference. Homeowners typically choose to pursue a short sale when they are no longer able to make the mortgage payments, but do not want the home to go into foreclosure. A foreclosure often negatively impacts an individual’s credit rating; so many people will seek to avoid foreclosure if at all possible. It should be noted that a short sale will also negatively impact an individual’s credit rating. However, many people believe that a short sale will not be considered as negatively as a foreclosure. A short sale generally causes a financial loss to the lender; therefore the lender must provide authorization for a short sale to occur. In a sense, a short sale package is a homeowner's “sales pitch” ...  more