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|  WHAT IS A SHORT SALE?
A short sale is when the seller owes their bank more than what the property is worth. The term "short sale" literally means that the property is being sold "short" of what the seller owes the bank. In a short sale transaction, the bank agrees to accept less than what the seller owes and agrees to release all liens on the property so that the property can be sold.
The goal of a short sale is to help homeowners avoid a foreclosure if you are no longer able to remain in your home. To most people, it sounds rather strange for any type of lender to be willing to accept a lower amount from homeowners, but there is more than one reason why a lender chooses to accept a short sale. The key reason is, simply put, that a short sale costs them much less than what a home foreclosure would.
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