Well this appears to be question, but not sure which direction you are going. Basically, claiming insolvency after a short sale, to avoid taxes, occurrs when your debt is greater than the total of your assets. IRS Form 982 provides the worksheet for claiming this relief.
However, since congress has not yet acted on extending the Mortgage Debt Relief Act if your SS has not closed by 12/31/12, you may be out of luck. Let's wait and see.
I hope this is the information you are seeking.