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The terms of your mortgage will have a significant impact on the outcome of a short sale.  There are seven different possibilities for a short sale outcome once a purchase agreement has been submitted to the banks Loss Mitigation Department for approval and final sale.  Let's take a moment to look at each in a little detail. 

1. The lender ignores the Purchase Agreement between buyer and seller for various reasons such as the offer was too low for their liking.  In essence, this is rejecting the short sale on this particular offer only.
2. Lien is released; seller is forced to sell other assets such as cars, snowmobiles, motorcycles, etc. to pay toward remaining balance.
3. Lien is released; seller is forced to carry remaining debt on a payment plan.  This is an uncommon outcome of an offer on a short sale, but it is a possibility. 
4. Lien is released; lender uses court order such as a wage garnishment to recover some of the losses involved. 
5. Lien is released; lender reports loss as a charge off or collection to credit bureaus; this reporting has a negative impact on seller's credit.
6. Lender refuses to approve purchase agreement but does indicate to seller, buyer, and Realtor the net proceeds it requires for approval of the short sale. 
7. Lien is released; lender forgives remaining indebtedness. 

Obviously, #7 above is the best case outcome for the seller that is going the short sale route.  I have the experience and training to help you through this process.  There are no fees on the seller's end for us to help you with your short sale - the bank pays all fees at closing.  Please call or text (507) 202-0995 or email me bryan@olmstedproperties.com for more details and information on selling short sale.  All inquires are confidential.