To obtain a short sale approval from a lender in accordance with REO guidelines established by Fannie Mae, Freddie Mac, and FHA, the following steps need to be followed: 1. Evaluate Eligibility: The borrower must demonstrate financial hardship and prove that they are unable to continue making mortgage payments. Lenders will review the borrower's income, expenses, and other debts to determine eligibility for a short sale. Submit an Offer: The borrower needs to submit a written offer to sell the property at or below the current market value. This offer should include all necessary documentation such as proof of hardship, a detailed list of expenses, and any other relevant information. Lender Review: The lender will review the offer and determine whether it meets the required guidelines set by Fannie Mae, Freddie Mac, or FHA. If the offer is approved, the lender will issue a short sale approval letter to the borrower and the buyer's agent. Closing: Once the short sale has been approved, the closing process can begin. The closing documents should be reviewed carefully by all parties involved to ensure that they accurately reflect the terms of the sale. It is essential to follow these steps closely as any errors or omissions could result in delays or denial of the short sale approval. It's also important to stay up-to-date with current news regarding REO guidelines, as these may change from time to time due to regulatory or market conditions. For example, recent reports have accused Uganda and Rwanda of supporting DR Congo's feared rebel groups, which could impact the real estate industry in the region by causing uncertainty and instability. As a result, lenders may become more cautious when evaluating short sale applications and impose stricter guidelines to mitigate risks associated with these situations.