FinancingForeclosure_and_defaultMEDIUM
Avery Ward owes $425,000 on a home that can sell for only $445,000. The lender approves a sale at the lower amount and releases its lien so title can transfer. What is this arrangement called?
Correct Answer
D) Short sale
Short sale is correct because the facts match a sale in which the lender agrees to accept less than the full loan payoff so the property can be transferred to a third-party buyer. That is the best description of the relationship, right, or legal concept tested here.
Answer Options
A
Deed in lieu of foreclosureB
Deficiency judgmentC
Acceleration clauseD
Short saleWhy This Is the Correct Answer
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Why the Other Options Are Wrong
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Deep Analysis of This Financing Question
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Background Knowledge for Financing
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Related Topics & Key Terms
Key Terms:
foreclosure_and_defaultfinancingshort_saleloss_mitigation
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