This is a great question. This is also a question is answered with lots of myths, confusion, and bad information. You need to speak with a qualified attorney on this matter. The state of Arizona has limited deficiency protection. Odds are very high that you qualify under the state’s deficiency statutes. However, you should speak with an attorney that specializes in contract law within the state of Arizona. You need a specialist in real estate contract law.
Usually this question comes up when we are speaking about home equity lines of credit. With most home equity lines of credit the lender’s ability to pursue you after a foreclosure or a short sale is exactly the same. However, you need to speak with a qualified attorney on this matter.