If a homeowner in mortgage distress owes more than the value of the home and is unable to make the loan manageable by refinancing or modifying the

mortgage, the next recourse often is a short sale of the property. All the following statements are true regarding a short sale EXCEPT:

Multiple Choice

Legal costs should be lower with a short sale than with foreclosure.

A short sale usually enables a better sale price and a faster sale than foreclosure.

A short sale is less damaging to the borrower's credit than a foreclosure, thereby enabling the borrower to be eligible for another mortgage

loan sooner.

A short sale relieves the seller of any other outstanding obligations on the home, such as owner association fees or a second mortgage.