What is a Short Sale or Short Payoff?
A short sale (also known as a short payoff) is when a lender or lenders accept a discounted payoff on an existing mortgage and agree to allow $0 in closing for the homeowner to avoid the cost of a foreclosure. In other words, when a homeowner owes more than can be collected through a real estate sale, a short sale allows them to sell their property to avoid a foreclosure for themselves and the lender.
