What must a homeowner provide to the lender to initiate a short sale process?

To initiate a short sale process, a homeowner must provide proof of hardship to the lender. This documentation is crucial because lenders require evidence that the homeowner is facing financial difficulties and cannot continue to make mortgage payments. The proof of hardship can include various forms of financial documentation, such as job loss, medical bills, divorce, or other circumstances that impact the homeowner's ability to pay their mortgage.

While proof of income, a detailed market analysis, and an appraisal report may be relevant in the overall context of a real estate transaction, they do not specifically meet the lender's requirement to assess the homeowner's situation for a short sale. The lender needs to clearly understand the homeowner's current financial distress, which is why proving hardship is essential to move forward with the short sale process.