what is a short sale real estate

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The term short sale in real estate refers toa sale that takes place when a financially distressed homeowner sells their 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.

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 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 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 percentage of home sales are short sales?

  • According to recent data from real estate information company RealtyTrac, about 5% of all single-family home and condo sales are short sales. Often homeowners are pushed into a short sale by personal financial troubles that make it impossible to pay their monthly mortgage to their lender.

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