What is a short sale?

A short sale is the sale of a property where the agreed sale price is not enough to pay off all mortgages and liens, but the secured lender agrees—after review—to accept the net proceeds and release its lien so the sale can close.

Parties you may interact with

• Servicer: The company that collects payments and often manages loss mitigation.
• Investor: The owner of your loan (sometimes Fannie, Freddie, FHA, VA, or private labels) whose rules cap what negotiators can approve.
• Title / escrow: Closes the transaction and distributes funds per the settlement statement.
• Junior lienholders: May need separate payoffs or releases before a first lien can clear.

What approval is not

Approval is not a promise that you will avoid credit impact or that a deficiency is forgiven unless your written approval and state contract terms clearly address that. Read documents with counsel.