Legal Question in Real Estate Law in Michigan

The simple answer is yes, they can. www.kliszlaw.com. Tim Klisz

with all due respect, I disagree with the previous answer to your question.

Your lender probably already knows how much money you have right now, and will not agree to the short sale if they think that they can get a deficiency judgement against you, and collect.

If the lender agrees to accept the short sale, your documents should also include a full release of liability on all loans. You can also negotiate to have the lender not report negative information on your credit report. Before you close, have a real estate attorney review your paperwork to be sure that you are protected against any future claims by the lender. This is not something that a Realtor can assure you of, and if you are trying to do this on your own, you really need an attorney to make sure you are not creating future problems for yourself.