What is a short sale?

 A short sale is a term used to describe an owner who would like to sell his/her home but currently owes more on the property than it is worth. An actual "short sale" only occurs after the bank has agreed to forgive the difference between what a homeowner owes on the property and what it sells for. Generally, a bank will only do this if the seller is already late on his/her payments and is approaching upon foreclosure of the home. When a seller opts for a short sale and completes it, he will usually still have significant damage to his credit as a result of not being able to re-pay the loan in full.

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