In a short sale, who typically has to approve the sale before it proceeds?

In a short sale, the lender typically has to approve the sale before it can proceed. A short sale occurs when a homeowner sells their property for less than the amount owed on their mortgage, and this can only happen with the lender's consent because they hold the mortgage lien on the property. The lender needs to assess the financial situation and the proposed sale price to determine whether the short sale is acceptable and aligns with their financial interests.

While the homeowner may initiate the short sale process and the real estate agent facilitates the transaction, the final decision rests with the lender, who must agree to accept the lesser amount settled in the sale. The appraiser’s role is usually limited to providing a fair market value of the property, which may inform the lender's decision but does not grant approval for the sale itself.