During a short sale, the sellerâ€™s lender(s) accepts a discounted payoff to release the existing mortgage, i.e. the home sales for less then what is owed. In a short sale the lender has the right of refusal on any offer, even if the seller accepts.
These attempts at selling are typically difficult to complete and often overlooked by buyers. The uncertainity and length of time for most buyers does not fit there needs. Consider it a half court shot with the clock expiring.