Property Ownership

A Florida homeowner whose property is 'underwater' (owes more than the property is worth) sells for less than the mortgage balance with lender approval. This is called a:

ADeed in lieu of foreclosure
BShort sale✓ Correct
CForeclosure by consent
DDeficiency sale

Explanation

A short sale occurs when the lender agrees to accept less than the full mortgage balance as full or partial satisfaction of the debt when the property is sold for less than the outstanding loan. The lender must approve the sale terms.

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