A short sale is a process mortgage lenders use to cut their losses on over-financed properties in foreclosure, instead of taking them to the auction block.
With a short sale, the lender may allow the sale of the property at a lower price and agree to accept a lower total payoff on the loan than the full balance owed.
The short sale process requires the owner to list the property for sale with a real estate agent. The list price is often set below market value to speed up the process.
If you already know you may not be able to sell the property on the market and pay the lender their full balance, a short sale could be a solution for you.
A realtor specializing in short sales listings can help you put together a winning short sale package and a contract that the mortgage lender is more likely to approve.