What does a "short sale" in real estate signify?

A "short sale" in real estate signifies a situation where the sale of a property yields proceeds that are less than the balance owed on the mortgage. This occurs typically when a homeowner is unable to make mortgage payments and is looking to sell the property in order to avoid foreclosure. In this scenario, the lender agrees to accept less than the full amount owed on the mortgage in order to facilitate the sale of the property.

This process often involves negotiations with the lender, who must agree to the short sale and forgive the remaining balance after the sale. As a result, the primary focus of a short sale is the financial aspect, namely that the sale's revenue does not cover the total mortgage debt, making the character of this transaction quite distinct from other types of real estate sales. This differs from the other options which do not accurately represent the fundamental nature of a short sale. For instance, a quick turnaround sale may imply a fast-moving market transaction but lacks the specific financial implications associated with short sales.