From WIKI "A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower."Short sale (real estate) - Wikipedia, the free encyclopedia
It takes 2 to 3 months for a short sale to be conducted. Prices of homes are going up rapidly now. In the time that it took from our cash offer being accepted by the two lenders (The owner, effectively, doesn't count.) the price of equivalent homes in the neighborhood has gone up 10%.