HONOLULU (KHNL) -- Certified Appraiser on Maui, Moj Scheidler, is back with her weekly Island Style Real Estate report. Tuesday's topic is: "Real Estate Exit Strategy, The Short Sale."

KRISTEN:  So Moj, what is a Short Sale?

MOJ:  Well, it's when a lender allows a property to be sold for less than the amount owed on the mortgage and they take a loss and due to the recent soft market, this is becoming more prevalent.

KRISTEN: And how does the process work?

MOJ:  Well, the process works, first you have to contact the lender and talk to the workout department then they generally want a letter of authorization to be able to talk to interested parties like realtors or the perspective buyer.  Then they need preliminary net sheet showing how much you expect the house to sell for, the loans, the different fees, late payments with the bottom line.  Then they want bank statements and your proof of assets and they also want a hardship letter and the bigger the sob story, the better.

KRISTEN:  So why would a lender agree to do this?

MOJ: They want to make something rather than nothing and in some cases, lenders might make nothing.  The property goes to foreclosure and foreclosures can be very expensive and very time consuming and so this gives them an opportunity to make more and it's just the bottom line that they're concerned with.

KRISTEN: So Short Sale is actually better?

MOJ: Yes and also, it's better for the person who's selling the house, too because they'll forgive the debt, they can save their credit in some cases and just come out in a better situation.

KRISTEN:  Alright, thanks a lot Moj, Short Sale and a very short interview.  Thank you.