In Real Estate Finance, a Short Sale is a process wherein a lender will settle for a payoff that is less than the actual amount the borrowers owe. Hence the term "Short" Sale. I did my first short sale in 1995. They are quite tricky and stressful. During hard times - like the ones coming, when home values drop below the amount owed, a short sale may be the only option. During the great financial crisis of 2008-2011, tens of thousand of short sales took place. And believe you me, the lenders acted as if everyone involved was trying to take food out of their baby's mouth. Well, Short Sales are back and folks... it's time to party!