Escrow & Title
A short sale in Ohio is one in which:
AThe property closes in fewer than 30 days
BThe lender agrees to accept less than the full amount owed on the mortgage as full payment✓ Correct
CThe seller receives no proceeds at closing
DBoth A and C
Explanation
A short sale occurs when the lender agrees to accept less than the full mortgage balance as satisfaction of the debt, allowing the distressed seller to sell the property and avoid foreclosure.
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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.
ProrationThe division of ongoing property expenses (taxes, HOA dues, rents) between buyer and seller at closing based on their respective days of ownership.
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