Finance
A 'short sale' in Mississippi occurs when:
AA property sells in less than 30 days on the market
BThe lender agrees to accept less than the full amount owed as full satisfaction of the debt✓ Correct
CA property sells below its assessed value
DA buyer purchases a foreclosure property at a discount
Explanation
A short sale occurs when the sale proceeds are insufficient to pay the full mortgage balance and the lender agrees to accept less than what is owed. Lender approval is required before closing.
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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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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.
Math Concepts
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