This agent thought that a Federal Law had outlawed deficiencies on short sales. This agent mistakenly thought that the Mortgage Forgiveness Debt Relief Act of 2007 made it so that anyone could short sale their house and the debt would automatically be forgiven. This agent had sold over 50 short sales and was experienced on short sales. She assumed that since the short sale lenders had not mentioned a deficiency in the short sale approval letter that meant there was no deficiency.
This agent was located in Oregon. However, according to this Oregon Attorney's Website, she was mistaken. Any of her 50 short sale customers could be at risk of a deficiency, even though their agent had told them that the loan had been forgiven. Don't make any assumptions when deciding on how to handle your short sale. Double check everything you hear and make sure it is correct.