Escrow & Title
A 'short sale' in Montana occurs when:
AA property sells within a short time of listing
BThe lender agrees to accept less than the full mortgage balance from the sale proceeds, releasing the lien✓ Correct
CThe seller sells without a real estate agent
DThe transaction closes in fewer than 30 days
Explanation
A short sale is when the lender agrees to accept less than the full amount owed on the mortgage from the sale proceeds, thereby releasing the lien. It is an alternative to foreclosure and requires lender approval.
People Also Study
Related Montana Questions
- In Montana, a 'release price' in a blanket mortgage is the amount that must be paid to the lender to release a specific parcel from the blanket lien. This is important for developers because it allows them to:Finance
- When a Montana buyer obtains a conventional loan, the lender typically requires private mortgage insurance (PMI) when the loan-to-value ratio exceeds:Finance
- A Montana lender who requires an appraisal before making a mortgage loan does so primarily to:Finance
- Montana's non-judicial foreclosure process under a deed of trust requires a minimum of approximately how many days from notice of default to trustee's sale?Finance
- In Montana, a buyer who purchases property at a sheriff's sale following judicial foreclosure on a judgment lien receives:Property Ownership
- When a property sells at a foreclosure sale in Montana, the successful bidder typically receives a:Escrow & Title
- Under the Fair Housing Act, a Montana lender who requires a higher down payment from minority applicants compared to similarly qualified non-minority applicants is engaging in:Fair Housing
- In Montana, a 'trust deed sale' (non-judicial foreclosure auction) must be publicly noticed. What is the minimum notice period before the sale?Escrow & Title
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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time 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.
Study This Topic
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →