A sale of real property for less than the total amount owed on the mortgage or other liens is commonly called a short sale, and it usually requires the lender's approval because the debt will not be paid in full from the closing proceeds.

In practice, a short sale often happens when a homeowner is under financial pressure and the property's market value has dropped below the loan balance. For example, someone who bought during a stronger market may later need to sell after a job loss, divorce, or major medical bills, but the expected sale price is not enough to satisfy the mortgage, delinquent taxes, or other liens. The lender may agree to accept less than it is owed, but the parties still need to address whether any remaining balance is forgiven or whether a deficiency judgment could still be pursued.

For an injury claim, a short sale can matter when a person is trying to preserve housing after a serious crash or work injury has cut off income. Sale proceeds may be limited, and existing liens can consume funds that might otherwise help with care, transportation, or temporary living costs. If an injury settlement is expected, the lender may want proof of that claim before approving the transaction. Wyoming does not have a single short-sale statute that sets a universal deadline or approval process, so the key documents are usually the loan agreement, payoff terms, and the lender's written approval.