A short sale approved- with NO FINANCIAL INFO GIVEN

We have all had our share of tough short sales. This one came to me a few months ago, and I did not give it much hope of it being accepted by the two lenders. The Seller would not provide ANY financial info that is always requested by the lenders.

The normal "short sale package"

• 2 years tax returns- NO
• 2 months most recent bank statements--NO
• 2 months' pay stubs--NO
• Monthly Income vs Expenses--NO
• Hardship letter-- YES
• Executed Contract-- YES

The reasoning for not providing these documents was to protect the assets and keep this sensitive financial info private.

A few years ago, I thought only short sales with a heavy-duty hardship would be approved. Death, Divorce, Job Loss were the situations where lenders accepted a short sale.

Hardship letters have since become much softer. Usually just a statement that they cannot afford the home due to decreased income.

I have closed over 30 short sales to date, and I have never heard of anyone getting one done without providing this sensitive info. I am curious to see if any other Realtors have had the same experience.

It seems obvious that keeping this most sensitive information from the Lenders would be advantageous for the consumer, and really why do they need all that info?

In this deal the home that the sellers purchased ( At the very peak of the market) had depreciated to almost half of it's value. They wanted to sell, but coming to the table with a few hundred thousand dollars was impossible. They were struggling to keep the home, so they decided to either give it back to the bank, or do a short sale.

I am a big proponent of short sales. I think that we are doing our community service when we can prevent a foreclosure, and help a family through one of the most frightening experiences. The neighbors benefit since a short sale typically sells for more than a REO, it is in better condition, and all this helps to soften the negative impact of the low sales price.

Has anyone heard of success with a short sale without financial info given? And, why do the banks need all that information anyway?