A VA short sale is when a homeowner sells their home for less money than what they owe on their mortgage. This is a tool for a homeowner who can't make their mortgage payments and becomes delinquent on the loan. Through a short sale:
The mortgage lender can recoup some of its money
The homeowner can avoid the costs and financial penalties involved with a foreclosure
Avoiding foreclosure is better for both the homeowner and the lender.