What is a shortsale

“The term is use to describe a sale in a situation where there is more debt owing against a property than the properties value. In a loan default situation, pre-foreclose the creditors may be willing to agree to allow the property to be sold for less than the loan amount and/or accept less than or “SHORT” the amount owed as payment in full”.  {per lines 9-11 of the Arizona Shortsale Addendum to the Listing Contract (emphasis added)}