What is a short sale?
 
Sale of property valued for less than the amount due on the loan.
 
Short sales can be a win/win in a losing situation. Borrowers may be relieved from their debt and Lenders may save the time and costs of a foreclosure. In a short sale, the Borrower (Seller) negotiates with the Lender to allow a sale of the property either to a third-party or back to the Lender in lieu of foreclosure, and the Lender will in turn require either a gross, net or minimum payoff.