An agreement with your mortgage company; the terms under which you are able to keep your home by remaining current on your mortgage and repaying the delinquent amount over time.
A loan Modification is any agreement that adjusts the terms of your loan, such as interest rate, term or principle. These are done to make the payments more manageable for you.
A sale of teh property where your lender approves a discounted payoff of all existing mortgages. In simpler terms, the lenders accept the proceeds generated by a market sale of the property as the payoff amount on the outstanding loans. Short Sales are frequently approved and escrows closed with no out-of-pocket costs paid by the seller.
A legally declared inability or impairment of ability of an individual or organization to pay its Creditors.