Originally Posted by Alchemy

copied from wikipedia since I couldnt word it properly myself

A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.

In other words, a great deal for the BUYER When purchasing my home I put in a bid on a short sale. Didnt get it though. Anything can happen with those things.