Anyone have any luck with completing a short sale from a seller's perspective? Any luck especially with a short sale agreement which involves including the 2nd mortgage or a line of credit as part of the pay-off? My understanding is even if your State has an anti-deficiency law, the seller is still responsible for ANY 2nd mortgage or line of credit deficiency. In other words, if the short sale pay-off only pays for most of the 1st mortgage, you are not responsible to pay the 1st mortgage deficiency. However, unless the lender who owns the 2nd mortgage or line of credit signs and agrees not obligate you to pay, they will sue you for what you still owe on the 2nd mortgage or line of credit. Is this different for foreclosures? I think foreclosures are pretty straight forward in that you are always responsible for any deficiencies. Not positive though. I think a chapter 7 bankruptcy would be the only option for complete deficiency forgiveness. Also, I heard Uncle Sam no longer requires the seller to show the short sale deficiency forgiven by the lender as income on your taxes. Any comments, insights, experiences?