Question

Fredrick purchased a property worth $150,000 on mortgage. He had paid $30,000 as a down payment on this property. However, because of a recent slump in the real estate prices, the property is worth only $110,000, forcing Fredrick to sell the property. Assuming that no mortgage payments have been made by Fredrick, this sale is termed a(an) _____.A. fixed mortgage saleB. real estate short saleC. real estate declining equityD. shrinking principal saleE. indexed equity

Answer 1

Answer:

B. real estate short sale

Explanation:

Based on the information provided within the question it can be said that this sale is termed a real estate short sale. In the context of real estate, this term refers to when an house prices fall and an individual can no longer cover the mortgage of the house with what the buyer is paying. Which is exactly what happened to Fredrick in this situation.