A short sale occurs when a home that is sold is worth less than the mortgage amount and the homeowner cannot make up the difference. For example, you sell a home for $75,000 but the mortgage is $100,000; you’re short $25,000. The bank enables the homeowner to sell the house by forgiving the $25,000 difference. So while the bank doesn’t own the house, the owner can’t sell it without the bank’s cooperation. Of course, in…
