Default and remedies
Short sale
A sale for less than the debt, requiring the lender’s consent
The lender agrees to release its lien for less than it is owed so the sale can close. The transaction runs on the lender’s timetable, and whether the remaining balance is forgiven or pursued is a separate question from the sale itself.
How the exam asks about it
The lender’s approval is the defining feature. Without it there is no short sale, only a listing.
Related terms
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