Escrow & Title
In Massachusetts, when both the first and second mortgage holder have agreed to release their liens upon sale at a short sale price, the seller receives from the lenders:
AA full discharge of both mortgages
BA short payoff authorization/agreement stating the lenders will accept less than full payoff and provide payoff letters and discharges✓ Correct
COnly the second lender's agreement
DA deed in lieu of foreclosure
Explanation
In a short sale, both lienholders must agree to accept less than their full mortgage balances and provide payoff letters and subsequent discharge documents upon receipt of the agreed short payoff amounts.
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