Short Sale


Also found in: Dictionary, Thesaurus, Financial, Wikipedia.

Short Sale

A method of gaining profit from an anticipated decline in the price of a stock.

An individual who sells short sells either stock or Securities that he or she does not own and that are not immediately ready for delivery. Generally the seller borrows the shares needed to cover the sale from a Broker and then delivers these shares to the buyer. The seller deposits an amount that is equal to the value of the borrowed shares with the broker. This amount stays on deposit with the broker until the stock is returned. The seller must ultimately return the same number of shares of the same stock to the broker, and the transaction is not fully executed until the stock is returned. The broker lending the stock is entitled to all the benefits he or she would have received if the stock had not been lent. When a dividend is paid, then the seller-borrower is required to pay the broker-lender an amount equal to the dividend.

References in periodicals archive ?
It's important to see that the house was the result of a short sale and not foreclosed.
What is unclear is whether a real estate broker and agent who assists a seller in obtaining a discharge from a mortgage lender or any other creditor in a short sale is in the business of debt adjustment.
The second-quarter 2013 CoreLogic suspicious short-sale analysis update found that the suspicious rate for single-family short sales remains high at approximately 3.8 percent of overall short-sale transactions as of the second quarter.
The owners benefit in short sale transactions because the harm to their credit history is more limited compared with a foreclosure.
mortgage funder Freddie Mac (OTC: FMCC) said it is streamlining its policies and processes so all Freddie Mac servicers can approve short sales for borrowers facing sudden financial stress due to divorce, death, disability or other common hardships on their own authority.
Who benefits the most from a short sale? It's a very convoluted economic model because the bank has already written off the toxic inventory that they own.
Trying to conduct a short sale while in bankruptcy requires strategy and a plan.
Short sales are becoming more and more common in expensive areas as Long Island luxury homeowners try to escape the embarrassment of a foreclosure, the New York Times reported.
Last year Paddilla, managing broker at real estate firm Key Concepts, sold 42 properties that were either bank-owned or short sales. This year her office is on track to sell 75 to 100 such properties.
My third read in this series and the subject of this review, is Short Sale Rush by Marian Anthony.
The market regulator's new policy outlines legal position about what short sales are permitted, as well as specific reporting and disclosure obligations.
According to The Dictionary of Real Estate Appraisal, 5th ed., a short sale is "a sale of real property in which the proceeds from the sale fall short of the balance owed on a loan secured by the property.