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Short Sales involve the sale of an asset, typically real estate, for an amount that is less than the outstanding balance on the mortgage or loan secured by that asset. This type of sale is often used as a last resort by homeowners who are unable to make their mortgage payments and are facing foreclosure. In a short sale, the lender agrees to accept less than what is owed on the loan in order to avoid the time and expense of foreclosing on the property. Short sales can be complex transactions that require the approval of the lender, as well as negotiations with the buyer and other parties involved in the sale.