Finance
A Wyoming property 'short sale' requires:
AOnly the seller and buyer to agree
BThe lender's approval since the sale proceeds are insufficient to pay off the existing mortgage✓ Correct
CWREC approval for the reduced sale price
DThe buyer to assume the remaining mortgage balance
Explanation
In a short sale, the property sells for less than the outstanding mortgage balance. The lender must approve the short sale because they are agreeing to accept less than the full amount owed.
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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.
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.
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.
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