Finance
In South Carolina, a 'short sale' occurs when:
AA property sells in a short time frame
BThe lender approves a sale for less than the outstanding mortgage balance✓ Correct
CA cash buyer closes in under 30 days
DThe seller accepts any offer within 24 hours of listing
Explanation
A short sale is when the lender agrees to accept less than the full mortgage balance from the sale proceeds. It requires lender approval and typically affects the seller's credit.
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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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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