Escrow & Title
A short sale in Georgia occurs when:
AA property sells very quickly
BA property is sold for less than the outstanding mortgage balance with the lender's approval✓ Correct
CA below-market price sale to a family member
DA cash sale with no financing
Explanation
A short sale occurs when a lender agrees to accept less than the full mortgage balance from the sale proceeds. The lender may require the seller to prove financial hardship.
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Key Terms to Know
Short Sale
A sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Transfer TaxA tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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