• When the bank takes over the property to sell at full market value
• A credit item that lasts forever, which can even put current and future employment in jeopardy

A Shortsale Is:

• A tool for a borrower to use when they truly can't pay their mortgage
• A way to avoid foreclosure
• Less impact on your credit score
• A way for a bank to result in smaller financial loss than through foreclosure
• A sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan

A Shortsale Is Not:

• "Get out of my mortgage free card" - a seller has to have a valid financial hardship for not being able to pay their mortgage