In real estate a short sell is when the proceeds from the sale of a piece of property (whether there is a home on it or not) are less than what the balance of the loan are.
This is happening more and more in this economy because with the housing crisis many people are finding themselves upside down on their home loans, which means they owe more than the home is worth. So in these situations if the homeowner has to sell and is lucky enough to find a buyer the price will probably be lower than the amount owned on the home loan.
In a short sell situation the lender can decide whether to accept or deny the offer. Usually a short sell is a way to prevent a foreclosure, it?s a last ditch effort for many. So this is often what the bank considers when decided to accept the short sell offer or not, will the foreclosure cause them a greater loss than the short sell.
If you?re in the market for a new home both a short sell and a foreclosure may be incredible deals, pricewise, for you.