The other day I was reading an article where someone posed a question to a real estate attorney regarding a property that sold higher than the foreclosure amount and if the foreclosed on party gets the extra proceed. I am not an attorney and I am not giving legal advice, however I think the answer to the question is how much if any is it over the deficiency judgment. It is easy to forget the accrued interest and legal fees that are all part of the deficiency judgment. This information is available in public records. So the question is did a property sell higher than the deficiency judgment as to who is entitled to the extra.
If a short sale was done correctly a release and satisfaction of the mortgage should have been part of the negotiations and recorded, I have seen where a second mortgage holder is willing to take a small amount and then it get to a collection agency and they want a much larger amont and a stipulation that it is going to be paid.
Many people think real estate is easy and on the surface it is but it can get complicated fast. Work with someone who has the knowledge to guide you through the complicated parts and know when to recommend legal advice.