Glossary
Short Sale
Selling for less than is owed, with lender approval. An option when there's little or no equity.
In a short sale, the lender agrees to accept less than the full mortgage balance. The lender may forgive the deficiency (the amount still owed) or pursue it — depending on your state and the agreement. A short sale generally causes less long-term credit damage than a completed foreclosure.
Read more in the Field Guide:
- Foreclosure Options: What's Actually Available — Foreclosure
Want a plain-language review of your situation?
A Home Transition Review gives you clear options — including the ones no buyer will volunteer.