Finance
What is a 'short sale' in Pennsylvania real estate?
AA residential sale that reaches closing within 30 days of being listed
BA sale where the proceeds are less than the mortgage balance, requiring lender approval to release the lien✓ Correct
CA sale of a property under 1,000 square feet or less than one-quarter acre in size
DA cash sale closed without any financing contingency by the buyer
Explanation
A short sale occurs when a property is sold for less than the total outstanding mortgage balance, with the lender's consent to accept the reduced payoff and release the lien. Pennsylvania sellers in financial distress may pursue short sales as an alternative to judicial foreclosure. The lender must approve the sale price and purchase terms, and may pursue a deficiency judgment for the remaining balance unless waived in writing. Short sales typically involve extended timelines due to lender review and approval processes.
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