A short sale is a real estate transaction where a homeowner sells their property for less than the amount owed on their mortgage. This usually happens when the homeowner is facing financial difficulties and cannot keep up with their mortgage payments. The lender must approve the sale, as they will be receiving less money than what is owed. In a short sale, the homeowner often works with a real estate agent to find a buyer. The process can take time, as the lender needs to review and accept the offer. A successful short sale can help the homeowner avoid foreclosure and start fresh financially.