A short sale occurs when a lender agrees to accept less than what is owed on a mortgage to avoid the costs of foreclosure. There are three stages of foreclosure: pre-foreclosure, foreclosure, and post-foreclosure. A short sale allows a buyer to purchase a home for less than the mortgage balance during the pre-foreclosure stage. Qualifications for a short sale include being in mortgage default, having no assets, experiencing economic hardship, and a decline in property value. The steps involve listing the home, making an offer, acceptance by seller and lender, and closing the sale once contingencies are met. A short sale can take 30 to 90 days to close and is contingent on lender