Yes, any 3rd party can submit a Short Sale offer. They’ll need a signed purchase contract and preliminary HUD1 or net sheet, and some may require proof of financing. Call the lender or loan servicing company to find out what documents they require. Send everything in one fax to the fax # they tell you to fax the packet to, and follow up about 4 days later.
Ask what the time frames are:
How long does it take overall for the Short Sale packet to be reviewed?
When will the property be appraised?
When will a negotiator be assigned to your file?
How will you be notified once they make their decision?
I would have the seller give you a letter of authorization and send that in immediately and also send it with the other documents in the Short Sale packet. You can draw up your own letter of authorization unless the loan is through GMAC (they send out their own which mist be notarized).
To get started, call the loan servicing company to find where to fax the letter of authorization. Then once your authorization is on file (takes 2-3 biz days), call and ask what documents they need to review a short sale request and where to fax it to.
Countrywide and many other lenders/servicers will want to update the financials of the homeowner – You want the budget to show that the homeowner cannot afford to keep paying the mortage (They’ll need a negative monthly budget surplus). The homeowner will need to write a letter of hardship explaining why they cannot afford to keep the home and are forced to give it up.