What is the short sale package?
The short sale package is the package of documents that gets submitted to your lender to support your request for a short sale. Each lender has different requirements for what documents go into the short sale package.
Contents of a complete short sale package.
Typically, the short sale package includes: a financial statement with supporting documentation, a BPO (Broker’s Price Opinion) for the property, payoff statements from other lien-holders, a preliminary HUD-1 settlement sheet, and a hardship letter from you.
Does this mean that all of my private information will get shared?
Not “all” of your private information will be shared. But your lender does need access to financial information, such as pay stubs and bank statements, in order to decide whether to approve the short sale. They need to see proof of your inability to pay, before they agree to take a loss on your loan.