Oregon Real Estate Practice Test 2026 – Complete Exam Prep

A short sale in real estate refers to the situation in which a property is sold for less than the amount owed on its mortgage. This typically occurs when a homeowner is unable to continue making mortgage payments and seeks to sell the property to avoid foreclosure. The process often requires the approval of the lender, as the sale price is less than the outstanding debt on the property.

In this context, the lender must agree to accept the reduced amount as payment in full. Short sales can provide a way for sellers to relieve themselves of mortgage debt while also potentially helping lenders minimize losses compared to foreclosure proceedings. The other choices suggest scenarios that do not accurately capture the essence of a short sale, such as selling a property for more than its mortgage balance or simply for a lower assessed value.