What is a pre-foreclosure sale or short sale or short payoff?

A Pre-Foreclosure Sale or Short Payoff or Short Sale is a method to avoid foreclosure by paying off the mortgage loan on your home even if your home’s sales value is not enough to pay the mortgage loan in full.
If you can no longer afford to make the mortgage payments on your home and you are interested in a Pre-Foreclosure Sale, you should contact the lender that has been collecting your mortgage payments to discuss your situation.
Your lender may be able to accept less than the full amount owed on your mortgage.
This option can also include a period of time to allow your real estate agent to market the property and find a qualified buyer.
Monetary help may also be available to pay other lien holders and/or help toward paying a few moving costs.

For more information about a Pre-Foreclosure Sale and other ways to help you avoid foreclosure of your home go to

To locate a housing counselor that can provide help and advice with respect to default and foreclosure, go to or call 1-800-569-4287.