To purchase a house, Elma obtains a mortgage loan from Fidelity Bank. Later, Elma is unable to make payments on the loan. Meanwhile, the market value of the house has declined. Fidelity agrees to a sale of the property for less than the amount due on the loan. This is

Question

Quizplus · Accepted Answer

A short sale occurs when a lender agrees to the sale of a property for an amount less than the balance owed on the mortgage loan, typically due to the borrower's inability to continue making payments and when the property value has declined below the remaining loan balance.

To Purchase a House, Elma Obtains a Mortgage Loan from Fidelity