Short Sale Authorization Letter

In the business world, short selling is an advanced trading strategy in which an investor sells a lent commodity. However, this technique is full of risks and pitfalls. Most of the time, people find themselves in a situation where they are facing troubles in maintaining their mortgage payments and want to sell that property or commodity to lessen their financial burden.

In these kinds of situations, your lender demands full authority to negotiate with the facilitating party and he needs a short sale authorization letter.

In the first paragraph of your letter, you will inform your lender about your decision. Give them some background of your decision and request a short sale.

Use the second paragraph to mention to your facilitating party and provide their complete information. Do not forget to describe its mandate.

In the third paragraph, declare this letter as an authorization letter and mention the validity if there is any.

Close your letter with some courteous salutation followed by your name.


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    Sample of Short Sale Authorization Letter:

    James Anderson and John Anderson,
    671 Pine Lane,
    Green Zone,
    Macau - 72165,
    Loan Number 78916,

    March 31, 2012.


    Bank of Credit and Commerce,
    Harley Street Branch,
    Macau – 749165,

    Dear Sir,

    We are writing this letter to inform you that due to some unfortunate reasons we are facing trouble maintaining our mortgage payments. This endless series of hardships have forced us to request a short sale.

    Kindly consider this letter as our authorization for you to deal with following persons regarding our case.

    Lilly Malhotra, Tiptop Financial Solutions Company, 561 Main Boulevard, Palm Enclave Macau.

    We request you to do all the correspondence regarding a short sale to them. We have given them full authority to deal with our accounts so please contact one of the above mentioned persons in case of any questions or concerns.

    This authorization is irrevocable until we inform you about the modifications or our account gets closed.

    Your cooperation in this regard will be highly appreciated.

    Thank You,


    James Anderson
    Social Security Number: 58951

    John Anderson
    Social Security Number: 66281

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    Template of Short Sale Authorization Letter:

    [Borrower’ Name],
    [City and Postal code],
    [Loan Number],


    [Receiver’s Name/ Designation],
    [Bank’s Name],
    [Branch’s Name],
    [City and Postal code],

    [To whom it may concern]

    We are dispatching this letter to keep you informed that due to some ill-timed and unfortunate incidents we are unable to maintain our mortgage payments. That is why we are requesting a short sale [commodity’s detail].

    This letter is a permit for you to deal with under mentioned persons regarding our case. [Give complete information of the facilitating party]. We have given [mention your facilitating party] full authority to deal on our behalf so contact them in case of any question.

    This letter is an irrevocable authorization until [validity of this memo].

    Your cooperation in this regard will be highly appreciated.

    Thank You,


    [Borrower’s Name],
    [Social Security/ National Identity Card number]

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