Short Sale

A sale of property where the sale of the property is for less than the amount owed on it. The lender(s) agree to accept a contract for less than the full amount owed on the Note. It is a good alternative for both the lender and the homeowner because the lenders will agree to stop the pending foreclosure or never actually file for foreclosure if the homeowner puts the house on the market. The homeowner may be able to stay in the home and not make mortgage payments while waiting for the sale.