Thanks to the new laws that were passed last Jan. & in July, if the lien holder agrees to a short sale whether you're an investor or this is a primary residence, they CANNOT seek a deficiency judgment from you in the future.
The only thing you have cause for concern is the Mortgage Debt Forgiveness Act is not on your side. You will be taxed by the IRS at your tax rate for the negative balance forgiven.
Please do a short sale if you're upside down. If you let the home go to total foreclosure, the bank CAN issue a deficiency judgment on you.
Shoot me an email directly if you want to talk about this some more or if you'd like me to look into it for you, I don't look back on this same Trulia thread for answers posted after mine. I close short sales currently within a 300mi radius of where I live.
Realtor Since 1996
Main Street Realtor