Almc, as you have observed from the over 155 responses, everyone is an expert on the subject and all of offered yes, no, maybe answers. In the wild, wild west of short sales, anything is possible. Quite often citizens, real estate agnets and the various parites involved are using a different lexicon when using the term 'short sale' in regards to selling real estate. Until you and I are confirmed to be using the same definations, there can be no agreement concerning your question between the two of us, but unfortuneately, therer will be dozens of others involved in this process.
What is a short sale?
1. You owe 200K on a condo, you can sell for 100k and bank says, "go ahead and sell, but bring with you $100K to the closing."
2. You owe 200K on a condo, you can sell for 100K and bank says, "Go ahead and sell, but I reserve the right to collect the $100K later most likely via a collection ageny to whom I will sell the right to collect." By the way, in FL this collection is possible for up to 17 years after the sale
3. You owe 200K on a condo, you can sell for 100K and bank says, "Go ahead and sell, but sign this promisory note that obligates you to repay the $100K
4. You own $200k on a condo, you can sell for $100K and bank says, "Go ahead and sell and I wiill forgive and relieve you of any requirement to repay the $100k. Oh, but you will be held accountable to pay the IRS for $100k in additional income. Hmmm, what to you think that IRS surprise will add up to?
In each situation the banks, morgage services and investors involved in your mortgage have their own set of fluid rules and formulas that they try to apply. They may choose to interpret their rules one way today and differnetly tomorrow. It is really the wild, wild west of real estate. Anything can happen. Yes, #4 has occured without hardship and #4 has even happened on 2nd homes. Anything can happen!
The responses offered here and by others reflect how distressing this process if for everyone. We each wish we could offer a concise..absolute response, but so much of what happens is so acutely dependant on the skillls of the agent/negotiator, the contact resources they have, and the organizations involved.
Best of luck in your sale.