what does short sale mean in real estate

Best answer


A short sale in real estate iswhen a homeowner needs to sell their home, but the seller is 渟hort?the equity needed to fully pay off the mortgage and all of the fees involved with selling. (ie. real estate commissions, escrow, title, etc.)

People also ask


  • How does a short sale work in real estate?

  • The owner is obligated to sell their home to a third party, while the proceeds of the sale go to the lender. The lender must approve the short sale before it happens.

  • What is short selling in stock market?

  • 1 A short sale is the sale of a stock that an investor thinks will decline in value in the future. … 2 锘縎hort sales are considered a risky trading strategy because they limit gains even as they magnify losses. They are also accompanied by regulatory risks. 3 Near-perfect timing is required to make short sales work.

  • What is’short sale (real estate)’?

  • What is ‘Short Sale (Real Estate)’. A short sale in real estate is when a financially distressed homeowner sells his or her property for less than the amount due on the mortgage. The buyer of the property is a third party (not the bank), and all proceeds from the sale go to the lender.

  • What is the difference between a seller and a short seller?

  • In contrast, a seller owns the security or stock in a long position. A short sale is the sale of a stock that an investor thinks will decline in value in the future. To accomplish a short sale, a trader borrows stock on margin for a specified time and sells it when either the price is reached or the time period expires.

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