Home short sales are real estate sales that are made to pay back a lender for debts owed on a home, in exchange for the homeowner being lifted of their remaining obligations. Unlike other sales, transactions of home short sales cover less than what the person owes, and would not deliver any profit for either party. On the surface, this would seem like an unwise decision, but for homeowners facing the threat of foreclosure, it can sometimes be the only wise decision. First, the homeowner and lender will settle on an agreed short sale, after which the home will be sold at the specified amount, nullifying the remainder of the mortgage. This directs the homeowner away from foreclosure, which could cause uncontrollably high damage to their credit. Although homeowners who choose to short sale will still be penalized credit-wise, the repercussions are much smaller, and recovery from sustained damages will be easier.