In Florida, a short sale occurs when a property is sold for less than the outstanding mortgage balance. The lender's approval is required because:
Correct Answer
C) The lender holds the mortgage lien and must agree to release it for less than the full amount owed
In a short sale, the lender must agree to accept less than the full mortgage balance and release the mortgage lien, because the lender has a legal claim on the property that prevents a clean title transfer without their consent.
Why This Is the Correct Answer
In a short sale, the lender must agree to accept less than the full mortgage balance and release the mortgage lien, because the lender has a legal claim on the property that prevents a clean title transfer without their consent.
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