Okay, we got approval. What now?
Approval is a milestone, not the finish line. A short sale still has to close, and the closing carries its own checklist: verify the approval terms, order and confirm payoffs, clear title and junior liens, coordinate the date, and handle post-closing items. Requirements vary by servicer and investor, so treat every item as a confirmation rather than an assumption.
The post-approval checklist
Once the approval letter is in hand, read it carefully before anything else. The approval letter guide covers each term in detail. Then work this closing checklist in order, confirming each item against the approval and the servicer's exact requirements, which vary.
Review the approval letter terms carefully
Confirm the approved price, required net, closing deadline, commission, seller contribution, junior lien allowance, and any deficiency or release wording. Flag anything that does not match the contract before proceeding.
Order payoff statements and confirm amounts through closing
Order current payoff statements for every mortgage and lien, and confirm the final amounts at closing. Payoff figures can change with interest, fees, and per diem, so verify them again before the settlement statement is finalized.
Clear title, junior liens, and HOA assessments
Confirm title is clean, that junior liens and title problems are resolved or released, and that HOA assessments are handled. Any lien that survives into closing follows the new owner, so this must be confirmed, not assumed.
Coordinate the closing date against the approval deadline
Deadlines vary, and extensions may be possible, but they must be requested early and in writing. Build the closing date from the approval's deadline and the buyer's financing timeline, and calendar every milestone in the process.
Confirm seller document updates and buyer financing contingencies
Confirm the seller's documents are current and that any buyer financing contingencies are satisfied or waived. A buyer whose financing falls through can restart the approval conversation, so verify the buyer's loan status as the date approaches.
Fund, record, and confirm the settlement
Confirm funding clears, the sale records, and all payoffs and releases are made from the proceeds per the settlement statement. This is the mechanical close that turns an approval into a completed sale.
Post-closing items: deficiency letter, taxes, and the record
If a deficiency release or letter was promised in the approval, confirm it is delivered. Tax consequences of a short sale may apply, so refer the seller to a qualified tax professional or attorney for their individual situation. Keep the full file, including the approval and settlement, as the record.
The takeaway
Approval does not guarantee a close. Every term, payoff, lien, and date has to be confirmed and carried through. The documentation discipline that got the file approved is the same discipline that gets it closed.
Related resources
- Short sale approval letter
Reading the approval terms this checklist depends on. - HOA liens and title problems
Clearing title before it records. - Junior liens and HELOCs
Resolving junior positions at closing. - The short sale process
Where closing sits in the full timeline. - For buyers and buyer agents
The buyer side of financing and closing. - Short sale documentation
The package that supports the file to the end.
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