The short sale package from the bank is generally pretty robust. It “could” ask for tax returns, complete asset and liability statements, a hardship letter, and pretty much all proof that the seller is facing a hardship. That said, it is completely up to the bank to accept or decline the short sale. Generally most banks will not entertain short sales until the seller is technically in default. Given that a notice of default does not happen until about 3 or 4 missed payments it would seem improbable that this guys bank will approve of the short sale. If he got a price near what he is asking I don’t know why he would not just take the offer rather then deal with the short sale. Also not all short sales that are accepted by the bank are done with a “walk away from the loan” note to the seller. Some banks will actually only accept the short sale if the seller signs a promissary note to the bank for the deficiency. Now that means the home still conveys but that the seller still owes money to the bank. The loan so to speak is not secured by a property anymore.
Ask you agent to call the agent for the seller to see if the seller has indeed sent in the short sale package yet. If he did get all the offers he claims then he should of sent the full package in.
