- The definition of a short sale involves selling a home for less money than the total of any remaining balance on the mortgage plus any liens on the property.
An example of a short sale is when you owe $150,000 on your home mortgage and $5,000 in Home Owners Association fees and your mortgage lender approves the sale of your house for $130,000.
a sale of securities or commodities which the seller does not yet have but expects to cover later at a lower price
- The sale of a borrowed security in anticipation of making a profit by repurchasing it after its price has fallen.
- An investment in an exchange-traded fund or derivative security whose performance is inversely related to that of a particular index.
(plural short sales)
- (real estate) A property sale negotiated with a mortgage company in which a lender takes less than the total amount due.
- (investments) A sale of a security that one does not own, delivery obligation met by borrowing the security from another owner.
- (economics) A sale of a financial security, commodity, or other good that one does not own with the contractual obligation to make delivery of the good to the buyer at a date in the future.