Nevada is a "recourse" loan state. It is not a "walk away state." Creditors could "go after" borrowers/sellers and seek a judgment for any deficiency for a home loan. Here's what two Certified Short Sale Professionals had to say when I asked them whether Countrywide or any other lenders were seeking deficiency judgments in Las Vegas, Nevada.  According to Don Lainer of the Platinum Elite Team at Prudential Americana Group, REALTORS, "No bank is doing anything systematically or consistently for that matter.  The negotiation skills of the listing agent will be pivotal to the seller's results.  At this time, we are not experiencing any issues with Countywide regarding this matter."  Leslie Carver of Team Carver also at Prudential Americana Group, REALTORS stated that, "I haven't had Countrywide or any lender go after my clients, yet.  Countrywide seems way too overwhelmed to go after borrowers/sellers."  Caution!  Do not advise clients on this matter.  In the case of a short sale, be sure to negotiate with all lienholders that the money they receive in the "short payoff" will be in FULL SATISFACTION of the debt, and that they therefore waive any right to seek a deficiency judgment.  Clients should always consult with legal and tax professionals in this matter.