After having completed a market analysis, an agent informed the seller that all the $150,000 is the balance owing on the home, it will probably sell for $125,000. They discuss the option of asking the bank to take less than the amount of indebtedness to satisfy the note. What are the possible consequences of engaging in a short sale?

a. The forgiveness of indebtedness could result in the lender sending a 1099 to the seller or obtaining a deficiency judgment

b. There are no significant negative effects that would result from a short sale

c. It will protect the sellers credit and allow them to buy another home immediately after the process

d. A short sale won't be possible because lenders will not take less than the indebtedness satisfaction for a note