I received a real estate advertisement worded "government ban on short sales." Well it was a clever way to get my attention and as soon as I read it I thought what a bunch of jokers playing on words. Then I started to wonder if people really might be confused by the subject. So I thought I'd write a quick explanation. Our Government put a ban on short selling, not short sales. So what's the difference? Short Selling is when you borrow stocks and sell them in hopes of buying them back at a lower price at a later date. This is a financial instrument and not to be confused with the transfer of real property. A Short Sale is when a lender accepts a lower payoff on a loan for property than the amount financed by the mortgagee. Easy to confuse and if you use the wrong terminology you're...
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