What is a Short Sale

A sale of a house in which the proceeds fall short of
what the owner still owes on the mortgage.
Many lenders will agree to accept the
proceeds of a short sale and forgive the rest of
what is owed on the mortgage when the owner
cannot make the mortgage payments. By accepting
a short sale, the lender can avoid a lengthy and
costly foreclosure, and the owner is able to pay
off the loan for less than what is owed.