Short sale

A sale where the lender agrees to accept less than the remaining mortgage balance to release the lien.

Short sales happen when the owner is underwater (owes more than the property is worth) but wants to sell. Requires lender approval, which can take 60-180 days. Often listed at attractive prices to drive offers, but the actual price depends on lender approval of net proceeds — a $200k listing might require $230k to close because the bank won't take less. Timing and certainty are the issues. Pros: can be priced below market. Cons: slow, uncertain, often the property is poorly maintained while the owner is stressed.