Finance
A NJ homebuyer's credit report shows a 'short sale' on a prior property. A short sale occurs when:
AA property is sold very quickly
BA lender agrees to accept less than the full mortgage balance as payment in full when the borrower sells a property for less than is owed✓ Correct
CA buyer closes escrow in under 30 days
DA seller provides seller financing at below-market rates
Explanation
A short sale occurs when a lender agrees to accept the sale proceeds, which are less than the total mortgage debt, as satisfaction of the loan. It typically requires lender approval and may have credit and tax implications for the seller.
Related New Jersey Finance Questions
- A balloon mortgage requires the borrower to:
- Under NJ's Truth-in-Lending Act (state TILA) and federal TILA, a borrower's 'right of rescission' allows them to cancel a non-purchase mortgage on their principal residence within:
- In NJ, a homebuyer using a VA loan is entitled to which unique benefit?
- A NJ lender who charges a prepayment penalty on a residential mortgage loan must disclose this in the:
- The back-end ratio (total debt ratio) used by lenders compares:
- An FHA loan requires a minimum down payment of:
- New Jersey has a realty transfer fee (RTF) paid at closing. Who is primarily responsible for paying this fee?
- The NJ Realty Transfer Fee uses a tiered rate structure, meaning:
Practice More New Jersey Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Jersey Quiz →