Which statement is NOT true about a short sale in Hawaii?

A short sale in Hawaii occurs when a property is sold for less than the total amount owed to the lienholder, making the first statement true. The term "deficiency" refers to the gap between the sales price and the amount owed, confirming the accuracy of the second statement. The lienholder may have the right to seek repayment of this difference from the seller, which is accurately reflected in the third statement.

The statement indicating that a short sale is when a property sells for less than the listing price is not true. In the context of real estate, a short sale specifically pertains to the sale price being less than what the seller owes on the mortgage, not necessarily less than what the property is listed for. A listing price can be set well above what the seller owes, particularly in distressed situations. Therefore, this differentiation is crucial for understanding the nature of short sales in Hawaii.