As seen in a previous blog entry -
barring certain exceptions a loan is a non recourse loan when the loan is made to purchase 1-4 units, the money goes into the purchase and the owner intends to occupy at least one of the units.
or, when the seller "carries back" some or all of the financing for the purchase of real property.
It has been noted that some exceptions to the purchase money protections might be waste, and fraud.
Practice tip, a short sale might be an opportunity to draft a release which could extinguish any problems which may have been part of the original loan transaction for both the lender and the borrower.
Now some people contemplating a short sale may have to consider whether their loan applications were less than perfect.
If there were problems with your loan application do not despair. Speak with your San Diego attorney. You have many options including short sale, deed in lieu or perhaps even looking into whether the loan broker made mistakes