Finance
A short sale in real estate occurs when:
AThe property closes in less than 30 days
BThe lender agrees to accept less than the full outstanding mortgage balance as payoff✓ Correct
CThe seller nets a profit in a short period of time
DThe buyer pays cash and closes quickly
Explanation
A short sale occurs when the lender agrees to accept the sale proceeds as full satisfaction of the mortgage, even though the proceeds are less than the outstanding loan balance.
Related Delaware Finance Questions
- What is 'mortgage fraud' and what are the consequences under Delaware and federal law?
- What is a 'conduit loan' or 'CMBS loan' in Delaware commercial real estate financing?
- What is 'margin' in an adjustable-rate mortgage?
- What is a 'Home Equity Loan' (HEL) versus a HELOC in Delaware?
- What is 'mortgage servicing rights' (MSR) in the Delaware mortgage market?
- What is 'seller financing' or 'owner financing' in Delaware?
- What is 'private placement' financing in Delaware commercial real estate?
- A Delaware first-time homebuyer receives a $15,000 down payment assistance grant from a state program. How does this affect their LTV ratio on a $200,000 home if they put the full $15,000 down?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →