Short Sale
Want to know what a short sale is? A short sale is when the lender of your mortgage loan accepts a discount because they are trying to avoid a possible bankruptcy or foreclosure auction. You can look at it like you are purchasing the property directly from the lender for a fat discount instead of buying it directly from the seller. Banks do not like bad loans on their books and they hate excess inventory. Lenders are aware about the potential money loss that might happen if you loose a property to an auction. That is because of the million fees involved putting a property in an auction.