A short sale in the real property (real estate) context—also known as a pre-foreclosure sale—is made when a homeowner sells their home for less than the balance due on the mortgage loan after the lender (bank) agrees to accept the lower amount in full satisfaction of the loan balance (a deficiency waiver).

Although the bank may waive its right to recover the balance or deficiency from you after the proceeds of a short sale are applied to your loan balance, a short sale will usually have a negative impact on your credit score—often as much as a foreclosure.

In Nevada, a short sale occurs when a homeowner sells their property for less than the amount owed on the mortgage with the lender's consent. The lender may agree to a deficiency waiver, which means they forfeit the right to pursue the homeowner for the remaining balance of the loan. While this can provide relief from the debt obligation, it is important to note that a short sale can still negatively affect the homeowner's credit score, potentially as much as a foreclosure would. Nevada law, specifically NRS 40.455 to 40.459, addresses the issue of deficiency judgments following foreclosure sales, which can also apply to short sales. These statutes outline the conditions under which a lender may seek a deficiency judgment and the time frame for doing so. However, if the lender agrees to a deficiency waiver in the short sale process, they are effectively agreeing not to pursue any further judgment against the borrower for the remaining loan balance.