1. First, a borrower is required to be qualified by a realtor if he or she is eligible for a short sale.

Once qualified, the realtor will then create a short sale package that will be approved by the
lender. When the lender approves of the package, the buyer will then pay for the sale, and the
money will then go to the lender, minus the fees for the agents involved.
2. A short sale is a way for lenders and borrowers to mitigate loss before foreclosure when the
borrower defaults on a loan. A homeowner is eligible for a short sale if he or she is experiencing,
financial hardship, defaulting on a mortgage, inability to have money until closing, and is
currently having a property that is currently having a lesser value than the remaining loan
amount.
3. A short sale package is needed so that a lender could assess if the short sale is a viable option
for them. A short sale package includes a letter of hardship and a letter of authorization. The
letter of hardship is where the homeowner summarizes his or her hardships, while the letter of
authorization gives power to the realtors to get information from the necessary channels to
justify the qualification of the homeowner for a short sale.