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A short sale in the Real Estate world is the sale of a home for less that what is owed on the current mortgage(s).  Lenders might allow the current owner to sell "short" in order to take a smaller loss than what would result should the property fall into Foreclosure.  The short sale process can benefit all three parties to the short sale transaction: 

Seller - gets out from underneath a mortgage and monthly payments they can no longer afford and avoids bankruptcy and foreclosure at the same time. 

Buyer - gets a home at a reduced price that is likely in better shape than many foreclosure properties would be. 

Lender - minimizes losses; avoids costly and lengthly foreclosure process; doesn't have to worry about getting a property back that might be tough to sell and could remain on the books for years. 

The first key for the short sale process to work well is that the seller needs to demonstrate financial hardship to the lender.  A seller than can afford the monthly payments is less likely to get the lender to accept a short sale. 

The second key for the short sale process to work is the ABSENCE of a second mortgage.  Since the second mortgage holder will likely have to forgo all or most of what it is owed, they are not likely to approve the short sale process. 

Short Sales do not work in every seller's situation.  If you are thinking of selling short sale and your criteria meets the above, please don't hesitate to call or email me for your no cost, no-obligation short sale consultation.