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.
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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.