A seller discovers that a property is worth less than the outstanding mortgage balance. The seller may still be able to sell the property if the lender agrees to a

A deed in lieu of foreclosure involves transferring ownership of the property to the lender to avoid foreclosure proceedings. While it may relieve the seller of the mortgage debt, it does not involve selling the property to a buyer at a lower price than the mortgage balance, which is the scenario described in the question.

A balloon payment refers to a large final payment due at the end of a loan term, often after a series of smaller payments. This does not pertain to selling a property for less than the mortgage balance and is unrelated to the seller's need for a solution in this context.

A reverse mortgage allows homeowners, typically seniors, to borrow against the equity in their home, receiving funds without the obligation to make monthly payments. This option is irrelevant to selling a property for less than the mortgage balance, as it pertains to retaining ownership rather than transferring it.