DON'T WANT YOUR HOUSE ANYMORE? HOW ABOUT A SHORT SALE???

I went to a listing appointment recently where the seller said he was moving out of state. He owes $350k on his property. the current market supports only a $280k sale price. He said "Let's do a short sale, then." I probed for more info and discovered he has other assets and earns a pretty good income as a professional.

I asked on what basis did he think his lender would agree to a short sale, and he replied: "Well if I don't pay the mortgage, they'll have to sell it at whatever the market will pay for it now." I pointed out that I didn't think the lender would let him voluntarily abdicate his financial responsibility. I then got out of there fast, explaining he needed to find another agent.

When you sign the mortgage papers in NJ, you give the lender the property as collateral for the loan. But I believe you also sign a personal loan guarantee indicating you will be responsible for the loan.

QUESTION: Won't the lender attach the borrowers income, or his assets, to get back the balance of the loan? I don't think agreeing to a short sale automatically waives the lenders' right to recover the balance due on the loan ... or am I wrong?