short sale
Short sale in real estate refers to a sale of a house when the sale price is less than the outstanding mortgage on the property. Short sales occur when the homeowner is in financial trouble and needs the home sold quickly. In order for a short sale to occur, the lending institution must agree to the short sale. Often, lenders agree not to hold the homeowner liable for any outstanding balance, and in some states, lenders are required to waive the outstanding balance.