When is it unnecessary to ask a seller to sign a Mortgage Verification form?

The correct choice indicates that it is unnecessary to ask a seller to sign a Mortgage Verification form when there is no mortgage on the property. This is because the purpose of the Mortgage Verification form is to confirm the existing mortgage details and any outstanding balances on the property being sold. If there is no mortgage, there are no loan details to verify, making the form irrelevant in such a case.

In situations where the property is under foreclosure, it would still be necessary to understand the lien situation and any obligations the seller has to their lender, thus making a verification relevant. Similarly, when a property is being sold for cash, while the transaction itself may not involve a mortgage, verifying the absence of liens or mortgages can still be pertinent for clear title transfer. Additionally, if the seller requests not to sign, that does not negate the requirement for documentation; rather, it may indicate a need for further discussion or clarification regarding the necessity of the form.