A Real Estate Short Sale is an arrangement between the homeowners and the mortgage lender(s). It can save a house from foreclosure.
A Real Estate Short Sale occurs when the mortgage lender or investor accepts less money than owed and considers the debt “paid in full,” thereby permitting the sale to occur. The difference between the amount owed and what the mortgage lender collects on the short sale is known as the deficiency.
Mortgage lenders in other states have tried to obtain judgments for the mortgage short sale deficiency and others have forgiven it. Fortunately, Arizona is an anti-deficiency state which will help to preserve your financial health (by saving your house from foreclosure) after the short sale process. See legal implications of the short sale process.