What is a short sale?

A short sale refers specifically to a situation in which a property is sold for less than the outstanding balance on the mortgage. This typically occurs when a homeowner is facing financial hardship and is unable to continue making mortgage payments, but the property is still in good condition and can be sold. In a short sale, the lender agrees to accept a reduced payoff on the loan, allowing the sale to take place for an amount that is less than what is owed. This can help the homeowner avoid foreclosure and minimize the negative impact on their credit score.

In the context of other options, while a quick sale for cash does not necessarily involve the financial distress that characterizes a short sale, it's important to note that speed does not define such transactions. Additionally, selling a home without a real estate agent does not pertain to the concept of a short sale, as it can occur in any type of sale. Lastly, properties marked for foreclosure may eventually lead to short sales if the situation allows for the lender to accept less than what is owed, but foreclosure itself is a legal process distinct from the negotiations and agreements made in a short sale.