A 'short sale' in Alaska occurs when:
Why A lender agrees to accept less than the full mortgage balance as full payment upon sale of the property Is Correct
Answer B: A lender agrees to accept less than the full mortgage balance as full payment upon sale of the property
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
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Key Terms to Know
A sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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