I just got of the phone with a guy who called me and said that his neighbor was moving.  He had bought a new house and now had his first house up for a short sale!  He wanted to know if he could do that.  In Idaho banks can go after you for the amount difference between what they get for a short sale or a foreclosure.  Maybe this hasn't been done yet.  But I think your asking for it and someday someone is going to get it.

If not illegal, this is certainly unethical.  I know there are Realtors knowingly doing this.  I think there are going to be some repercussions like  licenses.  Or maybe jail.   I would not knowingly do this.  This guy was not very upside down.  A year or two and he may not be.  He got a new job, better income and is going to be able to get right side up.   I hope to help him in a year or so.