A short sale occurs when the homeowner, typically thru a Realtor®, files a short sale package with the lender requesting them to accept less than what is owed on their lien.

During the process the lender will do an appraisal of the property, request financial information from the homeowner including tax returns, bank statements and income.

Once all the information is collected the lender/bank will make a decision as to whether they will approve the short sale.

Upon approval, all foreclosure proceedings will be stayed and the lender/bank will allow the homeowner to obtain a purchaser if one has not already been obtained.

If the approval is obtained sufficiently in advance of a scheduled auction sale many times the lender/bank will adjourn or forebear from scheduling an auction sale and allow the property to be conveyed under the approved short sale.