David lost his job and can no longer afford the payments on his home. His sister suggested a short sale. Since you were his real estate agent when he bought the house, he called you to find out as much as he can about short sales. Which of the following is a true statement?

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A short sale will help improve his credit rating.

He can proceed with a short sale without the lender$$s approval.

He will receive the full amount due on the loan as a result of the sale.

Short sales are sometimes used as an alternative to foreclosure, but could negatively impact his credit rating.