make sure that if your lender agree to a short sale, to add a paragraph that stepulate that they will accept the pay off amount agreed for the short sale as a full payment and that they will not pursue you for the balance of the loan. Although the new law passed July 11th, 2011. I like to make sure that my sellers are safe and want to see such disclosures in my short sale approval letter.
You also want to make sure that the buyers have reserved to most likely cover about 10% of the loan amount (your second/HELOC)
Demi Fox & Associates
Real estate consultants and short sale specialists
Thousand Oaks CA