Short Sale Approval Letter
Dear [Name],
Thank you for submitting your request for a short sale on your property at [Property Address]. After careful review of your financial information and the current market conditions, we are pleased to inform you that your request has been approved.
As a result, we will be accepting a short payoff of [insert dollar amount], which will satisfy the outstanding balance on your mortgage. It is important to note that this amount is subject to change if there are any additional fees or costs incurred during the process.
We understand that this has been a difficult time for you, and we appreciate your cooperation throughout the short sale process. Our team will work closely with you and your real estate agent to ensure a smooth and timely closing.
If you have any questions or concerns, please do not hesitate to contact us. We are here to support you and make this process as stress-free as possible.
Thank you for choosing [Lender Name] as your mortgage lender.
Sincerely,
[Your Lender's Name]
Formal Short Sale Approval Letter
Subject: Approval of Short Sale Request
Dear [Recipient Name],
We are writing to formally notify you that your request for a short sale of the property located at [Property Address] has been approved. Our review of your financial situation and the circumstances surrounding your mortgage account has concluded that a short sale is a viable solution.
Please note that the approval is contingent upon the completion of all necessary documentation and compliance with the terms outlined in this communication. You will receive further instructions regarding the next steps in this process.
Thank you for your cooperation.
Sincerely,
[Sender Name]
[Title/Organization]
Preliminary Short Sale Approval Email
Subject: Preliminary Approval for Short Sale
Hello [Recipient Name],
We are pleased to inform you that your short sale request has received preliminary approval. This means that, based on the information submitted, we are prepared to move forward pending final documentation and verification.
Please submit all required paperwork within [specified timeframe] to proceed. Failure to provide the necessary documents may delay the process or void this approval.
Best regards,
[Sender Name]
[Title/Department]
Casual Short Sale Approval Message
Subject: Your Short Sale Request Approved!
Hi [Recipient Name],
Good news! Your short sale request for [Property Address] has been approved. We're happy to work with you to finalize the next steps.
Please check your inbox for the list of required documents to complete the process. Feel free to reach out with any questions.
Cheers,
[Sender Name]
Conditional Short Sale Approval Letter
Subject: Conditional Approval of Short Sale
Dear [Recipient Name],
This letter serves as confirmation that your request for a short sale at [Property Address] has been conditionally approved. The approval is subject to the following conditions:
1. Submission of all outstanding financial documents.
2. Verification of listed property details.
3. Confirmation of buyer financing.
Upon meeting these conditions, we will proceed with final approval and instruct all parties accordingly.
Sincerely,
[Sender Name]
[Title/Organization]
Heartfelt Short Sale Approval Letter
Subject: Short Sale Approval Notification
Dear [Recipient Name],
We understand that facing financial difficulties can be overwhelming, and we want to let you know that your short sale request has been approved. Our team has carefully reviewed your situation and believes this solution can provide relief.
We are committed to assisting you through the remaining steps and ensuring a smooth transition. Please contact us promptly to complete the necessary arrangements.
Warm regards,
[Sender Name]
[Title/Organization]
What is a Short Sale Approval Letter and Why It Is Used
A Short Sale Approval Letter is an official communication from a lender or financial institution confirming that a request for a short sale has been accepted.
It serves several purposes:
- Confirms the lender’s consent to proceed with selling a property for less than the outstanding mortgage.
- Provides legal and procedural authorization to the homeowner and potential buyers.
- Outlines conditions, requirements, or next steps needed to finalize the short sale.
- Offers reassurance and clarity to all parties involved in the transaction.
Who Should Send a Short Sale Approval Letter
- Lenders, mortgage servicers, or financial institutions managing the property loan.
- Authorized representatives of banks or credit unions handling distressed property sales.
- Real estate attorneys acting on behalf of the lender, when applicable.
- Loan officers or approval committees responsible for reviewing short sale requests.
Whom the Short Sale Approval Letter Should Be Addressed To
- Homeowners requesting the short sale.
- Real estate agents representing the homeowner or buyer.
- Potential buyers, if their involvement requires official confirmation of approval.
- Legal representatives of the property owner or financial institution, when required.
When to Issue a Short Sale Approval Letter
- After the lender has completed a financial and property review and agrees to the sale.
- Following submission of the short sale package by the homeowner.
- Before any binding agreements with buyers are finalized.
- When preliminary approval needs to be formally communicated to the homeowner and involved parties.
How to Write and Send a Short Sale Approval Letter
- Verify all documentation submitted by the homeowner.
- Clearly state whether approval is preliminary, conditional, or final.
- Include specific instructions and requirements for next steps.
- Use a professional, concise, and clear tone suitable for legal and financial contexts.
- Choose the delivery method: email for quick communication or printed letter for official records.
- Ensure proper signatures and contact information are included.
Requirements and Prerequisites Before Sending the Letter
- Complete review of the homeowner’s financial situation.
- Verification of property details, mortgage balance, and liens.
- Approval from the lender’s short sale committee or authorized personnel.
- Preparation of any conditional terms or documentation required for compliance.
- Contact information for all parties involved.
Formatting Guidelines for a Short Sale Approval Letter
- Length: 1–2 pages maximum.
- Tone: professional, formal, and clear; optional casual or heartfelt tone if appropriate.
- Wording: precise, avoiding ambiguous statements.
- Style: official letter or email format with subject line and greeting.
- Include closing signature and designation.
- If conditional, list all requirements explicitly.
After Sending / Follow-up Actions
- Confirm receipt of the letter by the homeowner and agents.
- Monitor submission of required documents and compliance with conditions.
- Maintain records for legal and auditing purposes.
- Respond promptly to any inquiries or clarifications requested.
- Issue final approval once all conditions are satisfied.
Common Mistakes to Avoid in Short Sale Approval Letters
- Sending approval before completing full financial review.
- Failing to specify conditions or required next steps.
- Using vague or ambiguous language that may confuse recipients.
- Omitting key contact information or signatures.
- Ignoring legal or regulatory requirements related to the property sale.
Elements and Structure of a Short Sale Approval Letter
- Subject line indicating approval status.
- Greeting addressing the recipient directly.
- Body of the letter:
- Introduction of purpose.
- Statement of approval (preliminary, conditional, or final).
- Detailed conditions or next steps.
- Closing remarks expressing cooperation or support.
- Signature and designation of sender.
- Attachments or references to documents required for completion.
Tips and Best Practices for Short Sale Approval Letters
- Keep the tone consistent with the approval type (formal for final, casual for preliminary).
- Include deadlines for document submission.
- Clearly distinguish between preliminary and final approvals.
- Provide contact details for further assistance.
- Use bullet points for conditions to enhance clarity.
Frequently Asked Questions (FAQ) About Short Sale Approval Letters
Q: Can a homeowner act on a preliminary approval?
A: Only after final approval is recommended; preliminary approval indicates potential acceptance.
Q: What if the homeowner doesn’t meet conditions?
A: The short sale may be delayed or canceled; all requirements must be fulfilled.
Q: Can this letter be sent digitally?
A: Yes, email is commonly used, but official printed copies may be required for legal purposes.
Q: Is this letter legally binding?
A: It confirms the lender’s approval but may include conditions that must be met to finalize the sale.
Q: How soon should the letter be sent after approval?
A: As soon as the review and decision are complete, to avoid delays in the short sale process.
