Escrow & Title
A Mississippi real estate transaction involves a 'short sale.' In a short sale, the lender agrees to accept:
AThe full loan balance from the buyer
BLess than the outstanding mortgage balance as full satisfaction of the debt when the property sells for less than what is owed✓ Correct
CA partial payment and defer the rest
DThe property back in lieu of payment
Explanation
In a short sale, the lender agrees to accept sale proceeds that are less than the outstanding mortgage balance as full (or partial) satisfaction of the debt. The lender must approve the sale and the net proceeds. Short sales can impact the seller's credit and may have tax consequences for the debt forgiven.
Related Mississippi Escrow & Title Questions
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