There are a few major players in the short sale industry. First and foremost, there is the borrower, the person who signs the mortgage note. This is the person who owns the house and borrows the money from the bank. Next, there is the bank itself. This can be broken down into a few different categories. The person who the borrower primarily deals with is the mortgage broker. This person makes the decision of whether or not you qualify for the mortgage. They do not, however, make the decision of whether or not to accept a short sale. This is left to the loss mitigation specialist.
At large banks, the loss mitigation specialist is the person who handles the decision of whether or not a short sale should be approved. They do not always make the ultimate decision, though. In many cases, the decision to accept less than what is owed to the bank comes down to the asset owners themselves. The asset owner is the entity that allows the bank to borrow the money that then goes to the borrower for them to purchase a property. They make the ultimate decision of whether or not to accept a loss because it is technically their money that was borrowed.
The other party is the investor looking to buy the property through the short sale. This person will help you by buying your property for as cheaply as deemed reasonable by the bank. The investor can prevent a foreclosure from going to the end of the process through a sheriff’s sale. Rather than hoping to outbid the bank, the investor tries to get a reasonable price without the headache of completing the foreclosure.