Escrow & Title

At a Mississippi real estate closing, the seller signs a 'settlement statement' (Closing Disclosure). The seller's Closing Disclosure shows their net proceeds after deducting the mortgage payoff, agent commission, closing costs, and prorations. If the seller's numbers show a deficit, the seller must:

ACancel the transaction
BBring certified funds to closing to cover the shortfall (a 'short sale' situation if the lender has not agreed to take less)✓ Correct
CHave the buyer cover the shortfall
DRequest a delay until property values rise

Explanation

If a seller's closing numbers produce a deficit (they owe more than they'll receive from the sale), they must bring funds to closing to cover it — unless the lender has pre-approved a short sale. Sellers should calculate their expected proceeds before signing a listing agreement and before accepting a purchase offer.

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