The Push back has started.  The lenders Bank of America in particular are known for Leaving the possibility of going after a deficiency judgment in Washington State.  True Washington State is a non recourse state.  That means the foreclosing lender can not go after you for the default.  That does not hold true on a short sale and it makes no sense for lenders to request a deficiency unless it’s a 2^nd lien holder.  But they do.   This causes many short sales to fail.  What we are seeing is lenders will simply state the short sale is for a lien release only and sometimes not even mention the possibility of the default which could come back to haunt the seller.  I suspect that many RE agents don’t know the difference or ignore it hoping it goes away.  I typically will give my opinion then send them to a real estate attorney for advice on a short sale approve letter.  California is about to change the game with SB 1178, http://budurl.com/casb1178  Once this passes, and it will, you will see other states and hopefully Washington State follow suit.  With almost 25% of homeowners under water on their mortgages you will see a rise in strategic short sales as sellers will not have to worry about a deficiency.  Short Sales will be around for years to come.  Mike Karsten is a Real Estate Short Sale Expert with Mountain View Properties.