A short sale is known to be an alternative to a foreclosure. This is a process, typically initiated by the borrower (or homeowner) whereby they aim to sell the piece of real estate at a lower price than that which is owed to the lender on the mortgage.
Short Sales typically required that the lending institution agrees to accept a payoff amount for the loan that is less than what is currently owed. This is usually a lower cost alternative than the lending institution initiating a foreclosure process and / or taking position of the property.
