A Short Sale allows homeowners to sell their home for less money than they actually owe on the mortgage(s). Documentation is provided to the lender(s) convincing them to reduce the mortgage balance to allow the sale. If the sale is approved, the mortgages lender(s) will actually take a loss on the mortgage. If a bank approves the discount of a mortgage, the home is sold for a price lower than the total debt on the property without the seller having to come up with cash to cover the shortfall. The mortgage is satisfied and any foreclosure process stops.