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You can't do a short sale without the lender's approval. If a short sale is possible, ask what documentation you'll need to seek approval. The typical short sale documentation package requires: 1  A hardship letter that explains why you can no longer repay your mortgage.ith a short sale, you accept an offer on your home that's less than what you owe on your mortgage and your lender forgives the remaining debt -- the difference between your mortgage balance and the net proceeds from the sale.
The things that we need to make sure that we have in place in order to be able to carry out a short sale in the bankruptcy process are: Bank approval just like you would need outside of the bankruptcy court process. You also need to get the court to approve the short sale terms.