A short sale is when the mortgage holder agrees to a discounted payoff of the mortgage balance thereby limiting the loss that would occur with a foreclosure. (vahomeloancenters.org)
The justification for requiring a cash contribution is that the lender is taking a loss by agreeing to the short payoff of the mortgage loan. (arklawgroup.com)
In many markets, house prices have been declining steadily, and one of the best ways to deal with this is by accelerating the pay down and eventual payoff of your mortgage. (freefrombroke.com)