Earn $25 CASH per qualified ChartSnap Founder referralUnlimited referralsNo purchase required—Join the Affiliate Program →

Mortgage Glossary

Short Sale

Mike Starr·Reviewed August 2026

A short sale occurs when a homeowner sells the property for less than the outstanding mortgage balance, with the lender's approval. The lender agrees to accept the proceeds as full or partial payment of the mortgage. Short sales allow homeowners to avoid foreclosure, though they still negatively impact credit scores, typically less severely than foreclosure.