Utah General Sales License Practice Exam 2026 – Complete Study Guide

The statement that is accurate regarding the advantages of selling a second mortgage for cash at a discount is that it gets a lump sum of cash immediately for J. This option highlights a critical benefit of selling a mortgage: immediate liquidity. By selling the second mortgage, J receives cash upfront rather than waiting for the mortgage to be paid off over time. This can be particularly advantageous if J needs cash for other investments or expenses right away.

When a mortgage is sold at a discount, the buyer is effectively taking on a higher risk because they are paying less than the full value of the mortgage. The discount reflects this risk, but it also allows the seller to convert the asset into cash quickly. This liquidity can improve J's financial flexibility, enabling them to address immediate needs or invest in other opportunities.

In summary, receiving a lump sum of cash is a significant advantage of selling a second mortgage at a discount, making it a strategically beneficial decision in many situations.