Short Sale approval letters can come presented in several ways.  Sometimes they are straight forward and simple while others offer several options with the homeowner to select what works best for them.  The most common of these approvals include one or a combination of the following:

Forgiveness of the debt  The investor will be satisfied with the proceeds of the short sale and will forgive the remaining balance.

Release of Lien  This is often misunderstood and can be treacherous.  If this wording is used, the lien is removed to allow the sale of the property but the debt is not forgiven.  The homeowner will continue to owe the debt after the sale of the property if this is not negotiated properly. 

Contribution at closing  The investor would like a financial contribution from the homeowner to complete the closing of the short sale.  These contributions can range from a minor contribution to absurd amounts.  Often the amounts can be negotiated and at times the buyer and/or agents might contribute to complete the successful short sale.

Carry an unsecured note  The investor may want the homeowner to start a new loan, often at low or no interest, spread out 5-15 years. 

Upon receipt of short sale approval letters, it is recommended by the National Association of Realtors (NAR) that the homeowners consult with an attorney to understand the terms of the approval.  More often than not the homeowners rely upon their agents to interpret this legal document.  Clients of TEAM JOY REAL ESTATE are also given a list of attorneys they can contact who can explain to them further legal implications of a short sale approval letter.