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It is always in the best interest of the borrower to keep the lender informed. If the borrower is in default of the loan and is contemplating a short sale, it would be best for the borrower to let the lender know before the foreclosure proceedings are well under way. The lender may or may not grant more time to the borrower to find a buyer. In general, the process goes as follows:

• First, the borrower must find a buyer for the property.
• Second, the borrower must prepare all the necessary documents (See Question 17).
• Third, the borrower must submit all documents to the lender.
• Fourth, the lender will send out their own appraiser to make sure that the buyer’s offer is at fair market value.
• Fifth, the lender will make a determination on whether or not to agree to the short sale.