Short Sale

Definition: A short sale is a sale in which the lender agrees to release its mortgage lien even though the sale proceeds available to it are less than the full payoff amount.

Example

A lender approves a negotiated sale whose net proceeds will not fully repay the seller's mortgage.

Keep the distinction clear

Approval to release a lien is not automatically a release of the borrower's remaining debt. The written approval and applicable law determine any deficiency obligation.

Related terms

Deficiency Decree · Foreclosure · Deed in Lieu of Foreclosure

Keep studying

Mortgages: Borrower, Lender, Ownership, and Key Clauses

References: Florida Statutes 702.06: deficiency decrees

Pronunciation (US): short sayl (capitals show stress)

Pronunciation reference: Merriam-Webster