Definition
A sale in which the lender agrees to accept less than the outstanding mortgage balance.
Example
The short sale required lender approval, which took eleven weeks.
Related terms
- Abstract of Title
- Adverse Possession
- Affidavit of Title
- Certificate of Occupancy
- Chain of Title
- Cloud on Title
Frequently asked questions
What does Short Sale mean in real estate?
A sale in which the lender agrees to accept less than the outstanding mortgage balance.
How is Short Sale used in practice?
The short sale required lender approval, which took eleven weeks.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.