One of the advantages of doing the short sales is to make sure that the bank releases you from all obligations to your loan. This is key that your realtor gets the release!!!!!! The bank(s) will file a 1099 on the amount they lost but there is the debt forgiveness act so check with your CPA to make sure you are under the cap of the debt forgiveness amount.
If you have a recourse loan or are in a recouse state, then it is possible that the bank could come back at a later date for the deficiency amount.
To protect yourself from this, you need to have your attorney make sure that they have the bank sign off on any recourse at a later date.
Before I would finish up a short sale I would consult with my attorney to make sure that all the correct procedures are completed.
Jerry A. Lorenz
Cell: 440 724 4402