So I am concerned about that, if the bank is willing to let an investor off the hook without a deficiency judgment.

Getting any bank to forgive hundreds of thousands of dollars is never easy. Every situtation is unique. For example, just because you make your payment to Wachovia doesn't mean they actually own your note. They could be servicing it for any number of other banks, investment firms, or private equity funds. Each investor has their own guidelines on how and what they will do with deficiency judgement. My experience is some do and some don't - because your loans are with a large national bank that received funds from the government you maybe in a better position then trying to deal with a smaller regional or community bank. Until we push them and plead your case I never make promises, and anyone who does make promises is lying to you.

Please remember that in the event my company or any other company you choose to represent you on the sale is able to negotiate a forgivness of deficiency you will receive a 1099-C for the amount forgiven and it is considered 'taxable' income by the IRS. I cannot give tax advice but would advise you to talk with a CPA or visit the IRS website for more information. Here is link on our website that talks about mortgage debt cancellation: http://itsyourshortsale.com/will-bank-forgive-whats-owed-after-short-sale.