A short sale is a real estate transaction in which the bank agrees to accept less than the total amount owed on a mortgage as payment in full satisfaction of the debt, allowing the property to be sold and the remaining balance to be forgiven. This process is typically used when a homeowner is facing foreclosure due to financial difficulties and wants to avoid it by selling their house for less than what they owe on the mortgage. The short sale process can take several months, as it requires approval from multiple parties including the lender, the listing agent, and any other lien holders.