# Short Sale

> Short Sale governs what happens when the original payment map no longer holds

| Field | Value |
|---|---|
| Stable ID | `node:kiduna:real-estate-mortgage:default-foreclosure:short-sale` |
| Family | Default, Loss Mitigation & Foreclosure |
| Domain | Governance |
| Era | Institutional Age → Agentic Age |
| Kind | concept |
| Archetype | The Pattern |
| Claim layers | empirical, cultural_historical, synthesis, interpretive, symbolic_divinatory |

## What it is

Short Sale is a concept in the Default, Loss Mitigation & Foreclosure family, defined here by the function it performs in the property system rather than by label alone.

## What it actually does

Short Sale governs what happens when the original payment map no longer holds.

## Why it exists

It exists because place is unique and immovable while law, capital, information, and human lives must still coordinate around it across time.

## System mechanics

- **Who uses it:** owner, occupant, buyer, seller, lender, investor, steward, regulator
- **Incentives:** access, certainty, control, value, continuity
- **Inputs:** place, people, records, rules, resources, time
- **Outputs:** rights, constraints, uses, relationships, consequences
- **Dependencies:** Land, Authority, Information, Capital, Time

## Archetypal reading

- **Essence:** Short Sale governs what happens when the original payment map no longer holds
- **Gift:** Clarity about short sale makes a hidden allocation of place, time, authority, value, or risk available for deliberate choice.
- **Wound / Shadow:** When short sale is treated as neutral or inevitable, its costs can be shifted to people who hold less information, authority, liquidity, or mobility.
- **Failure mode:** The failure mode appears when short sale is stale, opaque, mispriced, misrecorded, overextended, or applied outside the conditions that made it useful.

## Lenses

- **Personal:** Notice where short sale appears as a structure in your own commitments: what is held, promised, priced, protected, excluded, or deferred?
- **Business:** Short Sale reveals a handoff among information, authority, incentives, operating work, and capital. Make the owner of each handoff explicit.
- **Financial:** Short Sale changes the timing, priority, comparability, liquidity, or distribution of cash flow and risk.
- **Property:** Short Sale changes how a physical place can be used, valued, financed, transferred, occupied, maintained, or reclaimed.
- **Community:** Short Sale can create benefits inside one parcel while exporting costs or opportunity to neighbors, institutions, or future residents.

## Divination

The Pattern enters the reading through Short Sale. The issue is not only what is visible; it is which map of ownership, time, risk, authority, or belonging currently governs the situation.

**Question:** What changes when Short Sale becomes the unit of analysis?

**Guidance:** Shift scale, clock, stakeholder, boundary, and claim layer before choosing a move.

## Game function

Creates a graph move that changes the active map. Initiative 1.

## Relationships

- **Payoff Statement is governed by Short Sale.** Payoff Statement is governed by Short Sale through a change in rights, information, cash flow, priority, timing, or physical use.
- **Partial Claim enables Short Sale.** Partial Claim enables Short Sale through a change in rights, information, cash flow, priority, timing, or physical use.
- **Short Sale prices Deed in Lieu.** Short Sale prices Deed in Lieu through a change in rights, information, cash flow, priority, timing, or physical use.
- **Short Sale externalizes to Loan Sale.** Short Sale externalizes to Loan Sale through a change in rights, information, cash flow, priority, timing, or physical use.

## Oppositions

- Use Value versus Exchange Value
- Speed versus Diligence

## Historical lineage and regulatory context

Read Short Sale through the lineage of Default, Loss Mitigation & Foreclosure: earlier customary or local arrangements became recorded, standardized, financed, regulated, digitized, or contested over time.

Rules vary by jurisdiction and transaction. Use the cited primary sources as starting points and verify current local law, program guides, contracts, and professional standards before operational use.

## Visual direction

Text-free rounded-square enamel artifact for Short Sale: one dominant symbolic mechanism with a restrained secondary counterforce; vitreous midnight enamel, blackened steel, warm brass, copper accents, mortgage-paper cream, deep green, slate, and sky blue.

## Engine output / Sentinel handoff

The generative interpretation above is preserved as Engine Output. Sentinel factors: jurisdiction-specific rules, factual uncertainty. These factors request contextual review; they do not delete or silently rewrite the candidate.

## Research / provenance

- [12 CFR Part 1024 — Regulation X](https://www.consumerfinance.gov/rules-policy/regulations/1024/) — Consumer Financial Protection Bureau; RESPA, settlement, escrow, servicing, loss mitigation.
- [FHA Single Family Housing Policy Handbook 4000.1](https://www.hud.gov/hud-partners/single-family-handbook-4000-1) — U.S. Department of Housing and Urban Development; FHA approval, origination, underwriting, appraisal, servicing, quality control.
- [VA Pamphlet 26-7 — Lender's Handbook](https://www.benefits.va.gov/WARMS/docs/admin26/m26-07/Lender_Handbook_VA_Pamphlet_Complete.pdf) — U.S. Department of Veterans Affairs; VA-guaranteed mortgage lending.
