Can a mortage company Go after me for for what they loose on short sale or forclosure?? I?

Hi,
My house is going under foreclosure and there are two loans. The second loan put a judgment on me. I am trying to sell the house under short sale. Will they come after me for whatever money they loose? If so, to what extent? If I file for bankruptcy will that take care of this mess so that I can begin to rebuild my life? I don’t have anything of value and currently unemployed and my family and I are actually living with my parents in their apartment now. I am a first time buyer and have not refinanced. The house was bought on November 2007. I also stopped paying about five months ago when all this began. Will this never end and will they come after me until I die?
WHAT CAN I DO?

Is short sell better than forclosure?

6 months ago, my brother was strongly encouraged by my brother in law who is a realtor to purchase a house knowingly that my brother cannot afford it. My brother is now two months behind with his mortgage and wants to give up the house. He wants to know which one is better short sells or foreclosure? He is also worried about tax implications? Help.