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What Is a Short Sale?

By Kristi WaterworthUpdated Nov 22, 2024 at 11:07 AM

Key Points

  • Short selling stocks involves borrowing, selling them, then repurchasing at lower prices for profit.
  • Real estate short sales allow distressed homeowners to sell properties below loan value with lender approval.
  • Short sales, unlike foreclosures, can portray homeowner responsibility, aiding future credit endeavors.

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