HSBC has a stream lined short sale program that does not require any financial documents. This is their standard process for all short sales, not one that requires strict eligability like the Bank of America Cooperative program.
While HSBC won't review for the Short Sale until their is an accepted offer, it's good practice to immediately fax them the Listing Agreement and a Third Party Authorization so that the agent or negotiator can contact them when needed.
The sales process is very similar to selling traditionally, with the exception that HSBC will be approving their final 'net' pay off.
HSBC will want you put the home up for sale at a Fair Market Value and try to get a reasonable price for the home that can be justified with comparable sales in the area. Once you receive an offer the actual short sale can be initiated and the required documents can be sent to the bank. They will be looking for the purchase offer, all addendums, buyer's pre-approval or proof of funds, and a pre-HUD1 settlement statement. Once that is received they will immediately send out an appraiser to value the property so they can verify the offer is within reason. After the appraisal is in, HSBC can often have an approval letter or counter offer within 3 weeks.
Like most other short sales today, the approval should include a waiver of deficiency so that the borrower will not owe the difference and they often allow the borrower $3,000 as an incentive for completing the short sale.
Short Sales in CT (Blog)
A Blog about Short Sales in Connecticut
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