A short sale involves the sale of property that you:

A short sale occurs when a property owner sells their property for less than the amount owed on the mortgage, typically with the lender's approval to avoid foreclosure. In this context, the correct choice highlights that the property is not owned outright by the seller; rather, the seller borrows against the property to finance its purchase. This means they are leveraging a loan to obtain the property.

When engaging in a short sale, the seller is generally trying to mitigate financial loss by liquidating the asset despite still being in debt from the mortgage. The lender must agree to accept less than what is owed, which is a crucial aspect of a short sale. Therefore, the process inherently involves borrowing to sell, as the mortgage creates an obligation that needs to be addressed.

The other options involve scenarios that do not align with the nature of a short sale. For instance, if the property is owned outright, it means there is no lien or borrowing against it, which would not involve a short sale situation. Leasing indicates a rental situation where the lessee does not have ownership or the capacity to sell the property. Lastly, foreclosure describes a legal process where the lender takes possession of the property due to the owner's failure to make mortgage payments, rather than a scenario where