A short sale is a home that is listed for sale at a price lower than the amount owed on the mortgage. Homeowners hope to sell their home as a short sale to avoid penalties associated with going into foreclosure. 



The Seller can get out from under the financial burden of a sinking ship and, hopefully, begin the road to economic recovery. The credit stain of a short-sale is far less severe than that of a foreclosure.

In some cases, there are people who qualify for new home loans in as little as two years after a short sale, rather than the 7-10 years following a foreclosure. The Buyer can get themselves a new home with a discount of anywhere from 10%-50% off of what the Seller originally paid.