Submitting the short sale package is a big step, but it is really just the beginning of the lender review.

Every lender handles things a little differently, and there is rarely a perfectly straight path from submission to approval. There can be document requests, valuation delays, investor reviews, and plenty of follow up along the way.

Here is what usually happens next.

Step 1: The Lender Reviews the Package

The mortgage company reviews the homeowner’s financial documents, hardship information, purchase contract, listing paperwork, and authorization forms.

If anything is missing, expired, incomplete, or signed incorrectly, the lender may request it again. This is why it is so important to respond quickly when additional documents are requested.

Step 2: The File Is Assigned for Review

Once the lender considers the package complete, the file is usually assigned to a negotiator or loss mitigation specialist.

That person reviews the homeowner’s situation and determines whether the file meets the lender and investor requirements for a short sale.

Step 3: The Lender Orders a Property Valuation

The lender will usually order an appraisal or broker price opinion to determine the current market value of the property.

The lender will compare that value to the offer on the property. They may also review the condition of the home, recent comparable sales, and current listings in the area.

Step 4: The Offer and Closing Costs Are Reviewed

The lender reviews the purchase price, commissions, taxes, title fees, liens, repairs, and other closing expenses.

They may approve the offer, deny it, or come back with a counteroffer.

If there are additional mortgages, judgments, solar liens, or other title issues, those may need separate approval before the sale can move forward.

Step 5: Final Approval Is Issued

Once all terms are accepted, the lender issues a written short sale approval letter.

The approval letter outlines the approved purchase price, closing deadline, allowable expenses, and any conditions that must be met.

It is important to review every detail because short sale approval letters are very specific.

Step 6: The Property Moves Toward Closing

After approval, the buyer works through inspections, financing, title work, and any remaining requirements.

The sale must usually close by the deadline listed in the approval letter. If the closing is delayed, an extension may need to be requested and there is no guarantee it will be approved.

Short sales take patience, communication, and constant follow up. Submitting the package does not mean the hard part is over, but it does mean the process is officially moving forward.

The faster everyone responds and the more organized the file is, the better chance we have of keeping things on track.