In my experience, I have never had a bank ask a seller for utility bills or proof of residency.
Eli Givoni, Director
Short Sale Department, LLC
Serving all 50 states
MARS Disclosure for General Commercial Communications
Short Sale Department, LLC is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit.
As for your 2nd question, the answer is the same. Some lenders require proof of residency. HAFA deals require proof of residency.