Short Sale- Lender's Rights

[Jake Kucheck]

I've stayed away from short sales as long as I possibly could, but now a family friend is in the unfortunate position of having to short sale or face foreclosure...and all of a sudden I am now forced to be a short sale expert. Wondering if I could get any help from all you BP experts out there.

I have one main question- the same one my client does:

Can the lender, post acceptance of a short sale offer and closed transaction, go after her for the difference. I know this doesn't often happen in practice, but I like to deal in absolutes. So, in the following scenario, she owes $470K, an offer is accepted at $410K, after closing costs the lender nets $385K, are they allowed to go after her car, 401K and such for the remaining 85K? Any portion of it? Expert opinions would be very much appreciated, along with documentation of legislation I can show to my client.

Thanks!