Join the forum discussion on this post - (1) Posts

Lenders will typically require a distressed borrower to furnish a variety of documents, which could include the following.  This is a compiled list and will vary with each lender:

• Written explanation (and proof) of the hardship the borrower is experiencing;
• Copy of the purchase contract signed by both the buyer and seller (borrower);
• Copy of the TDS;
• Proof of the buyer’s ability to purchase the property, i.e., a completed loan application, pre-approval by another lender, or evidence of cash on hand (bank statement);
• Copy of the certified escrow instructions; 
• Preliminary title report;
• Estimated net/closing statement certified by an escrow officer acceptable to the lender;
• Completed and signed IRS Form 4506, “Request for Copy of Tax Form;”
• Completed and signed personal financial worksheet;
• Previous two years tax returns;
• Employment paycheck stubs for the past two months;
• Profit and loss statement (if the borrower is self-employed);
• Past three months bank statements.