It's interesting how many consumers still ask us, "What is a Short Sale and are they right for me?"
A Short Sale is when the present mortgage holder agrees to accept a lower loan balance due in order to facilitate the sale of a particular property. The seller avoids a potential foreclosure, thus "maybe" saving part of their credit rating and the purchaser gains by "hopefully" getting a better purchase deal.
The negatives however are, the seller may have future tax liability on the amount of debt forgiven and for the purchaser, the amount of time, (3 months to 3 years!) off the market while the Short Sale process is approved or denied.
It's important to note that recently it is not uncommon for the mortgage holder or 3rd party to come back to both parties with a "higher" than contracted purchase and sales amount. Please consult your accountant and or attorney before you decide to go the way of a "Short Sale."