What is short sale?
What is a Short Sale?
A real estate short sale typically happens when you owe more on your mortgage than what the home is actually worth. When you apply for a short sale, you ask your bank to forgive your debt. In return, the bank has to approve the sale, which may take about 4 months to process through.
On the other hand, you want to choose this option instead of letting your home go to foreclosure, as short selling will prevent your credit from having a deeper and negative effect as a foreclosure would.
The bank or the lender will usually accept the short sale because they would rather lose some money from the property than letting it go to foreclosure and completely losing money.