short sale
A sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. Short sales usually occur when the homeowner is facing foreclosure. Many lenders will agree to accept the proceeds of a short sale and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments. By accepting a short sale, the lender can avoid a lengthy and costly foreclosure, and the owner is able to pay off the loan for less than what is owed. (See also: deed in lieu of foreclosure)
Category: Bankruptcy, Foreclosure & Debt → Foreclosure

Nolo’s Plain-English Law Dictionary. . 2009.


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

Dictionary from West's Encyclopedia of American Law. 2005.


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

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

Look at other dictionaries:

  • short sale — ☆ short sale n. a sale of securities or commodities which the seller does not yet have but expects to cover later at a lower price …   English World dictionary

  • short sale — The sale of security that is not owned by the seller. The seller borrows the security, sells it, and then buys it at a later date to return it to the lender. The purpose of a short sale is to attempt to profit from the fall in the price of a… …   Financial and business terms

  • Short Sale — A market transaction in which an investor sells borrowed securities in anticipation of a price decline and is required to return an equal number of shares at some point in the future. The payoff to selling short is the opposite of a long position …   Investment dictionary

  • Short sale — Selling a security that the seller does not own but is committed to repurchasing eventually. It is used to capitalize on an expected decline in the security s price. The New York Times Financial Glossary * * * short sale short sale ➔ sale * * *… …   Financial and business terms

  • short sale — noun sale of securities or commodity futures not owned by the seller (who hopes to buy them back later at a lower price) • Syn: ↑short selling • Hypernyms: ↑trading * * * an act or instance of selling short. [1865 70] * * * short sale noun A sale …   Useful english dictionary

  • short sale — A contract for sale of shares of stock which the seller does not own, or certificates for which are not within his control, so as to be available for delivery at the time when, under rules of the exchange, delivery must be made. Provost v. U. S …   Black's law dictionary

  • Short Sale — Unter Leerverkauf (auch: Blankoverkauf, Short Sale) versteht man den Verkauf einer Ware, eines Währungsbetrages oder eines Wertpapiers, das der Verkäufer zum Verkaufszeitpunkt noch nicht besitzt. Der Verkäufer profitiert von dem Leerverkauf, wenn …   Deutsch Wikipedia

  • Short sale — A short sale can refer to various kinds of transactions: *Short (finance) the seller does not own a security that he sells *Short sale (real estate) the lender allows a property to be sold for less than the amount owed on a mortgage and takes a… …   Wikipedia

  • short sale — A sale of that, usually corporate stock, which the seller does not at the time possess, but which, by the future date or time agreed upon for its delivery to the purchaser under the terms of the contract, the seller must in some way acquire for… …   Ballentine's law dictionary

  • short sale — sale of securities that do not belong to a seller (with the intention of buying them back after the price goes down) …   English contemporary dictionary

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