When a home owner cannot make their mortgage payments anymore they have the option of selling their home as a short sale. A short sale in real estate is when a home has more owing on it than what it can be sold for in the current local market....

When real estate property payments are not paid, then the property is foreclosed upon by the bank or Mortgage Company the loan was made through. The property is then referred to as a REO, real estate owned property. If someone is in the market for a cheaper piece of...