The saleâ€™s proceeds, even though less than what is owed on the mortgage, completely satisfy the debt. This should provide some peace of mind to homeowners in states that allow deficiency judgments, as they are assured that they wonâ€™t be liable for the deficiency amount in the future. More at
Please know that it is most important to talk with about 3 experts..one is a real estate/bankruptcy/short sale knowledgable attorney who will discuss your unique situation and options, next will be a tax expert such as a CPA who knows the rules and can give you your options regarding taxes, next will be a real estate agent who again is knowledgable in the local market where you are located. Once you have discussed your situation with these experts, you will have a good idea of your best options(s). Be careful of reading blogs and posts because laws can be different from one state to another. You must use experts who know your State laws as well as Federal.
Good Luck to you
Ann in Arizona... more