Oregon 30-Hour Real Estate Law Practice Test

What is one potential disadvantage of a short sale for a seller?

1. It's a guaranteed quick sale

2. It often requires buyer cooperation to release liens

3. It enhances the homeowner's credit score

4. It eliminates all mortgage payments

The correct answer is: It often requires buyer cooperation to release liens

A potential disadvantage of a short sale for a seller is that it often requires buyer cooperation to release liens. This process can be complicated and time-consuming, as the seller must negotiate with the lender not only to agree to the reduced sale price but also to manage any liens on the property. If multiple liens or subordinate lenders are involved, obtaining their consent can delay the sale or even jeopardize it altogether. Additionally, this requirement can put pressure on the seller, as they may have to wait for lengthy approval processes from banks or other lien holders before finalizing the sale, potentially leading to uncertainty and stress. It's important for sellers to understand this aspect of short sales and to be prepared for the possibility of negotiations extending beyond their control. This complexity can make short sales less desirable for some sellers compared to traditional sales, where they would not face such complications with lien releases.