Short Sale � What is it? Definition of a Short Sale:
A lender agrees to accept less than what is owed on a debt.

E.g. If a borrower owes $100,000 on a mortgage and is in default. The
lender may be willing to accept $70,000 for full payment of the $100000
mortgage. In short, the lender saves money by accepting less money now
compared to possibly losing money, holding onto the property and going
through a full foreclosure cycle. ~ Gail