In real estate, a short sale occurs when a lender agrees to allow a homeowner to sell a home for less than what is owed on the property. This typically occurs because the seller has a hardship (unemployment, medical issues, divorce) or because the seller owes more on the mortgage than the home is worth. A short sale allows the lender and homeowner to avoid the lengthy and expensive foreclosure process, and while a short sale often has a negative effect on a homeowner’s credit, the impact is typically less than that of a bankruptcy or foreclosure. Home staging can play an important role in short sales, but it’s all about the timing. For more information, see Ask Staging Diva “Should I start a home staging business in this economy?”