In a short sale, the bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the homeownerr. For the home owner, advantages include avoidance of a foreclosure on their credit history and partial control of the monetary deficiency. A short sale is typically faster and less expensive than a foreclosure. A short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. Short sales appear on your credit report as "pre-foreclosure in redemption", not as "debt discharged due to foreclosure" Less impact on your credit score. All mortgage debt is fully discharged

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