What Is a Short Sale in Real Estate?

A short sale occurs when a homeowner sells their property for less than the amount owed on the mortgage, with the lender’s approval. It’s often used as an alternative to foreclosure when the owner can no longer keep up with payments.

In my experience, short sales require patience and expertise, as lender approval can take time. However, they can benefit both the seller and buyer — sellers avoid foreclosure’s severe credit impact, and buyers may secure a property at a favorable price. It’s crucial to work with an agent experienced in short-sale negotiations to navigate the complexities successfully.