Many short sale and foreclosure clients believe that their ordeal is over after the sale, until the day they get the letter or phone call asking for the debt to be repaid. Sometimes a deficiency judgment will surface against a borrower whose sale did not produce sufficient funds to pay the mortgage in full. For instance, after a deed of trust sale in Nebraska a creditor has a certain period of time to file a lawsuit for a deficiency.  In a foreclosure, judgment against a debtor may be only partially satisfied by the sale. With a short sale, some lenders may sell the remaining value on promissory note or promise to pay (which was secured by the mortgage) to investors who then attempt to collect the remaining money owed. If you are in a short sale situation, make sure that the short sale approval documentation addresses any deficiency debt (how much or whether it is forgiven) and that you understand whether you may be held liable for any remaining debt above the sale proceeds.  Make sure you seek competent legal and tax advice so you fully understand the issues and dangers involved.