Fredrick purchased a property worth $150,000 on mortgage. He paid $30,000 as a down payment on this property. However, a recent slump in real estate prices forced Fredrick to sell the property for $115,000 only 2 months later. This sale is termed a(n):

Question

Quizplus · Accepted Answer

A real estate short sale is when the property is sold for less than the outstanding mortgage balance. In this case, Fredrick sold the property for $115,000, which is less than the mortgage he took out for $120,000 ($150,000 - $30,000 down payment = $120,000 mortgage balance). Therefore, this is a real estate short sale. The other options listed do not accurately reflect the situation described.

Fredrick Purchased a Property Worth $150,000 on Mortgage