An approved short sale transaction is a short sale transaction that has been approved by all relevant parties, including the servicer,
other affected
lienholders, or insurers, if applicable, and the servicer has received proof of funds or financing, unless circumstances otherwise indicate that an approved short sale transaction is not likely to occur.
Some
lienholders will sign the check over and allow you to use the money to make the repairs with that money,
others will keep the check until you prove the repairs have been made and then sign the settlement check over to you.