definition of a short sale, buying a short saleIf you're in the market for a new home, you might want to forgo the home builder's sales office, and look at newer neighborhoods where there are plenty of short sale homes for sale. When you are buying a short sale, you are getting a home that the current owners owe more on than it's worth. The definition of a short sale is a home that's on the market that the current owners have gotten permission from the bank to sell for less than what they owe on it. These homes can be great buys because they are almost always sold for less than appraised value. The bank cooperates with the current owners to avoid a foreclosure, which are expensive for everyone. The home owner gets a serious dent on their credit score with a foreclosure, and the bank has to pay to foreclose on the home and carry it in their inventory. A mortgage short sale is a good thing for a home buyer because of the price. Most of the time a short sale home is in better condition, in and out, than the foreclosed home inventory.