A Sherrif's Sale is the procedure that starts the foreclosure process. Typically a first position mortgage holder will be the only bid at the Sherrif's Sale as this is how they secure their interest in the property. Sometimes they foresee a loss with a home whether they foreclose or not. One option is for the mortgage company to discount the payoff by underbidding their claim. This sets the stage for a perfect short sale situation. We avoid having to negotiate with the first mortgage company and use the redemption value as the payoff. If a second mortgage is on the property we do still have to negotiate with them to obtain a short sale approval. However it is also possible for the homeower to see equity left allowing them to recapture some of their loss.