A short sale occurs when a lender agrees to discount a loan balance due to an economic or financial hardship on the part of the borrower. A short sale is a negotiation done through the lender's Loss mitigation department. The distressed homeowner hires a Licensed REALTOR to list, market and sell the property for its current market value, even if less than the outstanding balance of the loan. Since the lender is receiving less than what it is owned, a short sale requires the lender's approval before it can reach closing.

A short sale is executed to prevent a home foreclosure. Lenders will only approve a well planned, well prepared, well presented short sale to avoid the costs of a foreclosure that can reach tens of thousands of dollars.

The advantages that a successful short sale brings to the homeowner are too numerous to list, but they include the end the foreclosure proceedings against the borrower, minimum impact on the credit history (compared to the devastating impact a foreclosure would bring), ability to maintain current employment and obtain future employment. A short Sale is a complex, detailed and time consuming transaction and a distressed homeowner's financial future solely depends on his/hers decision of hiring a professional who specializes in and is an expert on Short Sales.