The answer is most likely yes. A seller who is selling a home as a short sale, which is when a home sells for less then the mortgage owed, needs the bank to release the mortgage to sell the home.  The mortgage is simply the security instrument protecting the banks interest in the home. But this dosen’t  automatically mean they have also released the seller of the obligation to repay them. Imagine the sellers suprise when they sell a home as a short sale and only later realize that the bank is still trying to collect from them. To compound matters too many real estate agents also don’t realize this and consequently are not negotiating the debt away.  A lot of sellers are unaware of their exposure and are not getting proper guidance and advice from their agent.

If you know of anyone is who is selling a home as a short sale be sure they are aware of their promise to pay the bank back and they are still obligated to do so unless it has been negotiated with the payoff.  I would also caution them to work with an experienced agent who has had short sale training.